New data shows whales are increasingly investing in Bitcoin (BTC) on exchanges. This could be a sign of impending volatility potential.
Whales are piling up Bitcoin on exchanges fast
Bitcoin price moved relatively sideways until October 13. Its price is hovering below $18,500, down 3% from the last 24 hours. Meanwhile, up-to-date data from CryptoQuant reveals that entries on exchanges are on the rise. Transactions specifically come from whale addresses holding between 100 and 1000 BTC. Commenting on the matter, a CryptoQuant analyst said:
It seems that whales want lower prices for Bitcoin. When transferred from wallets with an abundance of 100 to 1000 BTC to spot exchanges some time ago, the price could be further lowered and distribution to different wallets. But on the downside, I expect a negative scenario and I’m being careful.
Meanwhile, the dominant sentiment in the market remains on the side of extreme fear. In fact, the US CPI data, which investors paid attention to on October 13, was the main source of concern. Bitcoin price lost the $19,000 support before the ‘most hyper’ CPI pressure.
No upside signs ahead of US data
Known as a source of volatility, CPI data often leads to unusual short-term price movements both up and down. These are often reversed multiple times to trap opportunistic speculative transactions. Meanwhile, data source Material Indicators, which analyzes the market composition, took a look at the increasing demands of Binance whales following the expected PPI figures a day ago. According to their analysis, the BTC/USD order book chart on Binance showed a cluster of resistance above the spot price. This lack of on-site buyer support is well above $18,500.
Analysts say volatility is imminent
Although the Bitcoin price was unusually unresponsive to CPI data at first, sellers opted for the later hours. Analysts, citing the Bitcoin historical volatility index (BVOL) as evidence, have suggested that a drastic change is coming in itself. BVOL is just below 23, among its lowest ever recorded and only seen a few times in Bitcoin’s lifetime. Popular analyst TMV Crypto says the volatility index is in preparation:
The BTC LTF range is so subdued that BVOL is poised for a big move.
TMV Crypto says the market has been “stuck” for several days. Referring to the CPI statement, he added that he was “waiting for a solution today”.
Bitcoin price fell sharply after the release of US consumer price index (CPI) data on Thursday. However, speculation is common that it could drop to a new annual low. On the other hand, some of the investors are looking for a bottom price, at least in the short term. The headlines from the CPI data you followed from Kriptokoin.com were as follows:
- Monthly CPI in the USA was realized as 0.4% in September.
- Core CPI increased by 0.6% in September compared to the previous month. Thus, it increased by 6.6 percent compared to the same period of the previous year.
- Core inflation in the US has reached its peak since 1982.
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