The price of Bitcoin appears to be retracing the previously recorded gains made in January as whales seem to be exiting the network and opting to sell on centralized exchanges.
From observation, the number of whales on the Bitcoin network is steadily declining to levels not seen before since the beginning of this year. The contributing factor to the high move of coins to centralized exchanges (CEXs) is the number of whales’ exits from Bitcoin.
According to the indicators released by the Bitcoin market tracking platform, Glassnode, there are some bearish signs for the largest cryptocurrency by market capitalization. These include the metrics showing the exit of whales from the Bitcoin market, the whales who have at least 1,000 BTC coins in their possession and the inflows of over 1.7 million tokens, which is the highest since February.
High Centralized Exchange Inflows
The high inflows of BTC to CEXs are an indication that the whales are leaving the market in droves by selling their coins, preparatory for a more sustained market downtrend.
According to the report from Cointelegraph on Saturday, the latest sell-offs are largely driven by the short-term token holders. They might have accumulated their coins in mid-January and early February, when prices were at the lowest in 6-months.
Meanwhile, data revealed that due to unfavourable market conditions, the Bitcoin Fear and Greed Index has dropped to 11, that is, the “extreme fear” zone. Theis metrics measure the general level of greed and fear among Bitcoin token holders, especially investors.
BTC Transactions Unaffected
The poor market sentiment notwithstanding, the daily transaction in BTC appears unaffected by the ongoing negative market situation. An on-chain data firm, YCharts, revealed that about 233,892 transactions worth $30 billion had been carried out a day on the Bitcoin network, which is the average recorded range since January.
Furthermore, the lead analyst at Glassnode tweeted that those waiting for the Bitcoin capitulation wick will keep on waiting. The analyst appears to be aiming a dig at investors who were expecting the BTC to continue falling.
For emphasis, the Bitcoin capitulation wick is a period that features a long and sudden drop in the price of Bitcoin akin to the one that happened on March 12, 2020, when the price of Bitcoin shed 43% in a single day of trade at $4,600.
Another leading market analyst, Caleb Franzen, also posted on Twitter on Sunday that Bitcoin investors should expect the market to continue its downward trend based on his forecast. He further suggested that the price of the BTC will remain bearish in the short term, and he concludes his analysis by saying that more pain is expected to follow.
That said, it is not just all investors that were in panic mode concerning the price fall of BTC but some experts also further the narrative that the price slump will continue.
Bitcoin is currently down by 10.39% over the past week and is trading at roughly $33,806, as revealed by the Cointelegraph data.
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