Bitcoin broke above the $30,000 mark as on-chain data shows whales making significant outflows over the past day.
Bitcoin Whales Made Major Trading Flows Today
According to data from the on-chain analytics company Holy, 11 major BTC outflows were made from exchanges today. The relevant indicator here is the “exchange flow balancewhich measures the net amount of Bitcoin entering or leaving the wallets of all centralized exchanges.
When the value of this metric is positive, it means that a net number of coins are currently being transferred on these platforms. As one of the primary reasons investors may use trades is for selling purposes, this type of trend can have bearish implications for price.
On the other hand, negative values of the indicator suggest that holders are currently withdrawing some cryptocurrency from exchanges. Such a trend may be a sign of accumulation on the part of investors.
Now, here is a graph that shows the trend of the Bitcoin exchange flow balance over the last day or so:
Looks like the metric has seen some highly negative values recently | Source: Santiment on Twitter
As shown in the chart above, Bitcoin’s exchange flow balance has seen significant negative spikes over the past day. The largest of these spikes came from eight transactions of 2,000 BTC each that took place simultaneously.
Three more simultaneous transfers of 2,000 BTC each took place an hour after this batch of eight transactions. This means that a total of 22,000 BTC (worth around $661 million currently) left exchanges with these exits.
These sudden and extremely large outflows may be a sign of massive purchases from whales. Additionally, the timing may suggest that this buying pressure could be behind the sharp bullish move the cryptocurrency experienced today, in which it has now crossed the $30,000 mark for the first time. since June 2022.
Bitcoin trade volume data is also showing high levels, which may suggest that this price movement may be sustainable for the time being.
The indicator has sharply surged during the past day | Source: Santiment
The graph above also displays data for the “active addressesa metric that measures the daily number of unique addresses that participate in certain transaction activity on the Bitcoin blockchain.
It seems that this metric has not shown significant spikes over the past day, despite the strong price increase. This may be further evidence that the price spike is due to the large movements a small number of whales made today.
High participation from the average investor has always accompanied long-term price movements, so while trading volume may be sufficient to fuel the surge for now, it is not certain that the movement can continue. if the active addresses continue to remain low.
BTC price
As of this writing, Bitcoin is trading around $30,000, up 6% in the past week.
BTC has shot up over the last few hours | Source: BTCUSD on TradingView
Featured image by Thomas Lipke from Unsplash.com, charts from TradingView.com, Santiment.net