In a new report, CryptoQuant has detected significant flows of Bitcoin on the evening of August 23, possibly indicative of an impending wave of selling.
Whales shovel Bitcoin to centralized exchanges
Data released earlier today by Whale Alert suggests that volatility for Bitcoin could increase soon. In its first post, the platform reported a mysterious transaction carrying 4,800 BTC worth $124,954,585.
https://twitter.com/whale_alert/status/1694186790540673131
Just 2 hours after the first tweet, Whale Alert shared another transfer carrying 2,910 Bitcoins worth approximately $76 million. In this transaction, an anonymous whale filled the Coinbase wallet with a large amount of BTC. As CryptoQuant points out in its current report, these transfers are an early indicator of a potential BTC sale.
https://twitter.com/whale_alert/status/1694217869670711320
CryptoQuant confirms anomalous whale transactions
A significant amount of Bitcoin believed to be associated with “whales” has recently found its way into various central whales, according to data provided by the analytics firm. These whales have the capacity to influence supply and demand dynamics. As can be seen from the chart below, there is an abnormal amount of Bitcoin flowing into the stock markets towards the evening hours today.
The whales first purchased these Bitcoin reserves three to six months ago. The average price for these is between $20,000 and $25,000.
Market analysts are keeping a close eye on this development as the possible consequences could be far-reaching. The sudden accumulation of Bitcoin deposits, especially from whale-sized accounts, indicates a notable shift in sentiment. There are two main scenarios that can explain this activity. First, whales may expect further declines in market value. Alternatively, these deposits may be an attempt to benefit from price stability.
How is the Bitcoin price?
Despite the imminent threat of sell-off, Bitcoin price recovered somewhat today. It is currently trading in the $26,300 region. Nevertheless, its weekly performance remains at the 10% level, which has felt the destruction of recent times. This decline has had a direct impact on the altcoin market. Currently, while BTC is recovering, the altcoin sector is also making some recovery.
Technically speaking, the price of BTC was trading below the 200-day SMA line at the time of writing. Also, a negative price channel has formed on the daily chart for the past few weeks. The daily RSI is currently at 20.27. This means that I am oversold for BTC.
Finally, Bitcoin is trading near the bottom of the Bollinger Bands (BBANDS) indicator. These 2 technical indicators show that the BTC price may increase next week. You can take a look at the current analysis of Bloomberg analyst Mike Mcglone, which we have included in the analysis of Kriptokoin.com.
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