A large transfer to a Bitcoin exchange the wallet created on February 21 sparked calls for a broader price correction among downpour traders in the risk.
One entity (or group of entities) credited around 28,000 BTC worth over $ 1.5 billion to an address believed to be owned by Over-the-counter services of OKEx. A Twitterati noted that the OTC address also credited BTC in several wallets, including the uIt is believed to be from a "rich" address that has shown associations with several cloud mining scams and money laundering activities in Asia.
The highlighted address allegedly belongs to a rogue bitcoin. Source: It 's bullish
Analysts perceive larger crypto transfers to the exchanges and their associated services as a sign of impending selling pressure. A trader is most likely depositing bitcoin in of public wallets when he intends to sell them for cash or exchange them for other cryptocurrency tokens.
Conversely, more mind Les Withdrawals indicate their intention not to sell / trade but to hold the bitcoins.
Recently, the data on the exchanges showed massive drops of exchanges BTC reserves , down about 635,000 from its March 2020 high, or just under 3 million . They largely coincided with a dramatic rise in the BTC / USD exchange rates, which rose by around 1,200% over the same period.
Bitcoin reserves on all exchanges have plunged sharply since March 2020. Source: CryptoQuant
The OKEx deposit, as mentioned above, appeared when Bitcoin was showing signs of overshooting. On Sunday, the cryptocurrency took another price milestone above $ 58,000, leaving Twitterati concerned about a sell-off. imminent ahead.
Short term shock?
It is also possible that the market will end up absorbing selling pressure as Bitcoin becomes the consciousness of mainstream investors as that safe haven.
Ben Lilly, cryptocurrency economist, a rediwrote an article which focused on an ongoing liquidity crisis in the Bitcoin market. He said that three sectors: investment firms using crypto, corporations / institutions and decentralized finance have actively sucked the supply of Bitcoin from the exchanges.
Bitcoin maintains a bullish bias above technical support levels. Source: BTCUSD on TradingView.com
Technically, Bitcoin expects to extend its short-term bullish bias due to a reasonable relative strength indicator and well-defined support levels in its 20 and 50-4H moving averages.