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Bitcoin needs to clear $51K to reduce the chance of new sell-off from BTC whales

Analysis warns that large-volume transactions are hitting exchanges as BTC price action improves.

Bitcoin (BTC) whales are the center of attention again this week as large transactions flow back to exchanges.

Data from on-chain analytics platform CryptoQuant on Dec. 24 shows that relatively, whales are increasing their presence as potential sellers.

Action stations as Bitcoin climbs to $51,000

According to CryptoQuant’s Exchange Whale Ratio indicator, the proportion of large inflows to exchanges out of total inflows is now at a one-year high.

Inflows sped up significantly as BTC/USD rose to $51,000 overnight on Thursday, and the implication could be that large-volume investors plan to take profits at the top end of Bitcoin’s current range.

“It is better to watch out until BTC breaks $51k levels,” one CryptoQuant analyst cautioned.

Read more:  3 reasons traders now expect Bitcoin hitting $13K before a new rally

Related: Missed out on hot crypto stocks in 2021? It paid just to buy Bitcoin and Ethereum, data shows

Miners, too, are holding onto their newly released coins from block subsidies, with their reserves now at six-month highs.

“Miners own more BTC than when BTC was at $69k, in fact, they added back all the BTC they net distributed since the drop from $69k,” contributor Venturefounder noted. 

Bitcoin needs to clear $51K to reduce the chance of new sell-off from BTC whales

Bitcoin miner reserve vs. BTC/USD annotated chart. Source: CryptoQuant

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