Credit: Original article published by Coingape.

After registering over 40% gains just in the last two weeks, Bitcoin (BTC) finally entered a sharp correction on Monday, February 22. The Bitcoin price took a dip below $50,000 levels correcting over 15% from its all-time high.

Although Bitcoin (BTC) has partially recovered from the low, it is still 8.13% down at press trading at $52,126 with a market cap of $968 billion. As per on-chain data provider Santiment, bitcoin whales have been behind the recent correction. Over the last week, the number of whale addresses with a minimum of 1000 BTC dropped ~2% from 2,462 a week back to now at 2416.

Another data provider Glassnode cites a similar observation. It writes that Bitcoin whale addresses holding between 1K-10K BTC were increasing over the last year calling it a ‘whale spawning season’. However, it adds that these addresses have been reducing holdings over the last two weeks. The Glassnode report states:

“Wallets with 1k to 10k BTC holdings in particular have been in a strong uptrend since March 2020, having increased by 14.18% between 12-Mar-20 and 5-Feb-21. This has been referred to as ‘Bitcoin whale spawning season’ as these addresses represent holdings of millions to hundreds of millions of dollars (considering price rallying from $3.8k to $58k in that time). However, over the last two weeks, this wallet class appears to be ‘reducing holdings’.”

Courtesy: Glassnode

Bitcoin Exchange Inflows Skyrocketed Before Correction

Also, the data provider notes that just as the Bitcoin price surged past $58.3K the exchange inflows spiked significantly for profit booking. Just before Bitcoin’s sharp 16% price drop, the one-hour exchange inflows touched a 16-week high.

Bitcoin price volatility continues to remain high at this point. After a dip below $50K, BTC quickly recovered over 10% from the bottom, however, it failed to breach the $55K level and is once again under major profit booking to its journey south.

But Santimnet notes that there’s still some chance for Bitcoin price recovery with dormant tokens on the move. But social indicators show that there’s a major lack of “buy the dip” calls. Also, the Bitcoin network’s other indicator for ‘Realized Profits or Loss Metrics’ showed signs of crowd overconfidence.

Interestingly, another data from Glassnode shows that we might have entered the next consolidation cycle and Bitcoin will see a strong support at $48K.

The post Bitcoin (BTC) Whales Behind the Current Slide Below $50,000, Exchange Inflows Spike High appeared first on Coingape.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

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