PiChain Ghana

Bitcoin Whales Accumulate Despite Ongoing Exchange Outflows

The Bitcoin whale is currently accumulating, but despite the ongoing accumulation, a substantial amount of BTC continues to flow into various exchanges.

Bitcoin Whales Accumulate Despite Ongoing Exchange Outflows

On the daily chart, Bitcoin has experienced a significant decline compared to the previous week’s surge. Bitcoin dropped to a low of $40,200 on December 11, marking a roughly 10% decrease from the peak of $44,600 before rebounding to $42,200 at the current moment.

Although signals of a downturn are observed in the converging Moving Average Convergence Divergence (MACD) indicator, overall sentiment remains bullish. The Relative Strength Index (RSI) is below 60, indicating a slowdown in the upward momentum, but the market, as a whole, is still in a strong upward trend.

Bitcoin whales have responded with conflicting sentiments amidst recent price fluctuations. Despite the general increase in whale addresses, the latest exchange flow data tells a contrasting story.

According to IntoTheBlock, whales have accumulated over 22,000 BTC in the past week, showing increased accumulation despite the recent BTC downturn.

However, a more detailed analysis of whale accumulation reveals a nuanced picture. Examining the distribution of BTC supply on Santiment, fluctuations in addresses holding 1–10,000 BTC suggest sporadic selling from these addresses at certain points during the week.

On December 14, the chart displayed around 1,932 addresses, but currently, that number has decreased to approximately 1,928 addresses. Despite this slight decline, the total supply held by these addresses continues to increase, with around 1,896 addresses recorded at the same time as the previous month.

Based on CryptoQuant’s analysis of Bitcoin exchange flows, recent inflows have surged. The chart illustrates a consistently positive flow since December 5, except for December 14. This positive flow indicates an increasing movement of BTC to various exchanges, signaling heightened selling activity.

This aligns with the observed fluctuations in accumulation patterns within whale addresses. Inflow amplification has contributed to a scenario where price trends are unaffected despite ongoing accumulation. Currently, around 805 BTC are being pushed onto exchanges, suggesting that whale accumulation may be part of a long-term strategy, hinting at predictions of an upcoming price surge.

Source: AZC News


Disclaimer. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Leave a Comment

Your email address will not be published. Required fields are marked *