We are already in the middle of April, it seems as if it had passed in the blink of an eye. However, what we want to highlight in this weekly summary of Bitcoin whale activity (April 12-18) is that for the first time in a long time the trends are quite even. At the same time, Bitcoin falls more than 8% of its value this Sunday. What happened? Here we explain what we mean.
Again we reiterate that all the data collected here was obtained from the Whale Alert account on Twitter. This is just a look at one of the factors in the crypto market. The intention is for information only.
The week Bitcoin whales evenly distributed their trends
Throughout the week we registered a total of 95 operations that totaled 151,730 BTC. The day with the most BTC mobilized was Tuesday, April 13, when 28 operations were carried out with a total of 42,801 BTC transferred at the end of the day.
According to our summary chart on whales, the predominant trend was for transfers between unknown wallets, at least in terms of the amount of BTC transferred. Therefore, 62.52% of the total mobilized by whales this week was in that sense. This is equal to 94,849 BTC.
Next, we find that accumulation regained predominance over the introduction of liquidity in the market, but by very little. While transfers from exchanges to unknown wallets represented 13.56% of weekly activity (20,577 BTC), movements in the opposite direction represented 11.92% (18,084 BTC).
This places the introduction of liquidity in the market as the weakest trend of the week of the whales, since transfers between exchanges totaled 18,220 BTC (12% of the weekly total).
A pause to evaluate the movements of the Bitfinex Hack 2016
Something interesting that also happened this week, specifically on April 14, is that there were 63 operations from the direction of the Bitfinex Hack 2016 to unknown wallets. This was “one of those days” when the crypto world saw millions of dollars go into the wrong hands. However, it must be remembered that it will be difficult for the hacker to sell them. What could happen is that the transfers contributed to a volatile day in the BTC market.
With the movements of that day, it can be said that the hacker has moved 8.3% of his almost 120,000 BTC, with a value of more than US $ 7.4 billion. But does this explain why Bitcoin is falling right now? Not precisely.
Bitcoin performance: falls below 50-day SMA
At the time of writing this post, Bitcoin has lost 8% of its value over the course of the last 24 hours. The range has been between US $ 51,100 and US $ 60,500. Its current value is US $ 55,880.
Its slide has been well below the support of the 50-day Simple Moving Average (SMA) for the first time in six months. This could mean a deeper pullback ahead. Although the drop seems typical of a bull market correction, it could extend further if prices find acceptance below the 50-day SMA.
These events often invite stronger sales, especially from those who can be considered weak hands.
What was the cause?
From this drop we can say that Turkey’s decision to ban cryptocurrency purchases is throwing cold water on the BTC market. In addition, CNBC reported that there are chances that India may be planning something similar. It’s a major change as we come from days of euphoria after Nasdaq listed Coinbase and Bitcoin stocks hit all-time highs.
While the exact reason for the sudden drop is unknown, the market mood may have been affected due to rumors that the US Treasury plans to charge various financial institutions for money laundering using cryptocurrencies.
Government bans, BTC hacker leadership moves, whale deposits on Binance before the crash. All are factors that appear to have influenced this drastic move on Sunday. It is too early to say what the Bitcoin whales might be thinking of doing next, but it may be that those who sold in the middle of the week are looking to take the tokens of those who decide to sell before the fall.
A recovery in Bitcoin could be expected, as this weekend the Coinbase Premium Index (%) reached a new all-time high according to CryptoQuant. This indicator measures the percentage difference of the price of Binance (BTCUSDT) to the price of Coinbase (BTCUSD). The higher the premium, the greater Coinbase’s spot buying pressure.
CryptoQuant CEO Ki Young Ju said a few hours ago that the estimated leverage ratio decreased slightly, but is still high. The market is not afraid, it is still greedy. In this scenario we would recommend not succumbing to emotions or fear if Bitcoin falls further, and evaluating all available data.