Bitcoin price dumping is „not going to happen“ as whales are kept out of the exchangesOn 13. Oktober 2020 by admin
The post-BitMEX commercial arena is not inclined to sell even though the BTC/USD is close to USD 11,500, according to CryptoQuant data.
„It’s not going to happen“ a sale of Bitcoin (BTC) and the associated price drop, said a well-known CEO of a well-known analysis tool.
In a tweet on October 12, Ki Young Ju, CEO of CryptoQuant, pointed out that the average inflow to the exchanges remained low despite the price gains of BTC.
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Ki: Inbound flows to the exchanges „still in the safe zone
Ki highlighted CryptoQuant’s medium exchange entry metrics, which remain comfortably within the low-risk area, suggesting a low probability of sale.
The average exchange entry measures how much Bitcoin Trader enters, with the implication that it could be used for sales or trading activities. By extension, it gives an idea of the activity of whales, the large hodlers that plan to get rid of their BTC.
„There is not going to be dumping of BTC,“ Ki said.
„The average entry into all exchanges usually indicates how many whales are active in. Above 2 BTC is the danger zone, and we are still in the safe zone.
Therefore, the rise of the BTC/USD to about USD 11,500 this week has not increased the temptation for investors to sell.
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Bitcoin mean inflows vs. BTC/USD 1-month chart
The average Bitcoin entries vs. the 1-month BTC/USD graph. Source: Ki Young Ju/ Twitter
The lack of activity is in clear contrast to what happened earlier this year. On March 9, a week before the coronavirus caused a drop in asset prices, currency inflows surpassed the „danger zone“ of 2 BTC. Days later, around March 14, inflows reached a peak of almost 5 BTCs. Subsequently, Bitcoin fell to USD 3,600.
What’s the selling pressure on BitMEX?
CryptoQuant has also previously pointed out that the miners‘ flows contribute to Bitcoin’s price action. Last month, it was a peak in the flows of the mining groups, also presumably destined for sale, which accompanied a 3% drop in the BTC/USD.
In October, the situation with withdrawals was distorted by BitMEX as the derivatives giant is being investigated by the US tax authorities. BitMEX withdrawals totaled 50,000 BTCs on October 2 alone, according to CryptoQuant data.
BitMEX inflows and outflows chart
Figures from BitMEX, Cointelegraph and Digital Assets Data confirm that it doesn’t have as much market share for Bitcoin futures as in the past.
Bitcoin futures volume exchange comparison 1-month chart
Bitcoin futures volume comparison chart at 1 month. Source: Cointelegraph/ Digital Assets Data
Bitcoin disassociates itself from traditional markets while predicting a rise that will ‚take your breath away
As several analysts pointed out, Bitcoin has largely weathered the storm caused by the platform’s problems, exceeding the resistance levels of USD 11,000.
This resistance has emboldened Bitcoin’s bullish case, Cointelegraph reported, with a growing number of market participants confident that new gains will precede new losses.