- Bitcoin price recorded a new 3-month low today post Musk’s Twitter meltdown and threats of selling Tesla’s remaining Bitcoin holdings.
- The exchange inflows have become unusually high and analysts warn traders to keep their leverage small.
itcoin price fell to a 3-month low earlier today retracing to $42,000 level which many believe was caused by Elon Musk’s recent Twitter meltdown, however, the price soon bounced off to rise above $45,000 as the total correction since last month high reached over 30%, the biggest correction this bull season. While many Bitcoin proponents believe the recent market shakeup is not out of the ordinary, the unusual exchange inflow continues to rise which might indicate another bearish downtrend in the short term.
Ki-Young Ju, founder of crypto analytical firm crypto quant and a popular crypto analyst has pointed towards the growing exchange inflow and warned traders to keep their leverage small and to avoid longing Bitcoin in the coming few days.
A similar unusual exchange inflow was registered on Bitfinex just hours before Elon Musk announced Tesla would no longer accept Bitcoin payments owing to the environmental concern following which the price of the top cryptocurrency recorded a 10% correction. While many blame Musk for the recent sell-off and corrections, Bitcoin proponents claim an upward 200% surge since the start of the year does come at a cost of certain corrections ranging between 10%-40%.
Bitcoin Whales Behind the Recent Sell-Off?
Bitcoin this bull season has developed a unique price pattern where it has risen to a new ATH every month followed by an immediate crash ranging between 10%-30% and an elongated consolidation phase before moving to the next ATH. With each new ATH, the consolidation phase has gotten longer since fore the first two months BTC recorded a new ATH in the first week itself, then as the consolidation phase got longer the new ATHs started to come in the second week.
The recent sell-off for sure has created a panic in the market given Musk single-handily gave fuel to multiple debunked FUDs all at once which has created a panic among new investors and whales seem to be making the most of it. Until May, even during the dips exceeding 20%, the exchanges continue to register massive outflows.