According to data by TradingView, on crypto exchange Bitstamp, around 09:34 UTC on Tuesday (March 16), the Bitcoin price reached an intraday high of $56,449.
Per data by CryptoCompare, currently (as of 09:39 UTC on March 16), Bitcoin is trading around $56,228, up 0.68% in the past 24-hour period; for the year-to-date (YTD) period, Bitcoin’s return on investment (ROI) is +94.07%.
Earlier today, Philip Gradwell, Chief Economist at Chainalysis, pointed out that data from Chainalysis Market Intel about “BTC inflows to exchanges” (which is the “daily amount of asset received via the blockchain by all exchanges covered by Chainalysis”) suggests that “further sell pressure” lies ahead since in the past seven days, the amount of BTC held on centralized crypto exchanges has gone up .
#bitcoin balances of exchanges have reversed trend and increased in the last 7 days, suggesting further sell pressure.
This is even when taking into account uncertainty as to whether some outflows may be internal movements to cold storage.
— Philip Gradwell (@philip_gradwell) March 16, 2021
As for the question of if it is possible to predict that a BTC whale is going to dump a large amount of Bitcoin by looking at BTC flows into exchange wallets, this is what crypto analyst Alex Krüger had to say:
You don't know if inflows are for selling, just as you don't know if a large increase in Bitfinex shorts reflects bearish bets, hedging / carry trades, or whale psyops.
— Alex Krüger (@krugermacro) March 16, 2021
Larry Cermak, Director of Research at The Block, believes that “most of on-chain activity is psyops”, i.e. whales taking advantage of how much traders seem to place on on-chain metrics such as “BTC inflows into exchanges” by making misleading transfers.
Yea I'm increasingly convinced that most of on-chain activity is psyops and becomes a self fulfilling prophecy. That being said, on-chain data becomes quite interesting for pre-listing activity on Ethereum and then also for macro long term trends
— Larry Cermak (@lawmaster) March 16, 2021
As for macroeconomic factors that could affect the price of Bitcoin, the bond market is nervously waiting for Fed Chair Jerome Powell to the speak to the press on Wednesday after the end of FOMC’s two-day meeting.
The yield on the 10-year U.S. Treasury Note currently (as of 10:08 UTC on March 16) at 1.601%, according to data by MarketWatch.
Featured Image by “SnapLaunch” via Pixabay.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.