We are already in the middle of the month 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 drops more than 8% of its value this Sunday. What happened? Below we explain what we mean.
Again we reiterate that all data collected here was obtained from Whale Alert’s Twitter account. This is just a look at one of the crypto market factors. The intent is informational only.
The week in which Bitcoin whales evenly distributed their trends
Throughout the week we recorded a total of 95 trades that totaled 151,730 BTC. The day with the most BTC mobilized was Tuesday, April 13, when 28 trades were made 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 that of transfers between unknown wallets, at least in terms of the amount of BTC transferred. Therefore, 62.52% of the total mobilized by the whales this week was in that sense. This is equal to 94.849 BTC.
Then, we found that accumulation resumed the predominance over the introduction of liquidity in the market, but for very little. While transfers from exchanges to unknown wallets accounted for 13.56% of weekly activity (20,577 BTC), reverse movements accounted for 11.92% (18,084 BTC).
This places the introduction of liquidity in the market as the weakest trend of whale week, as transfers between exchanges totaled 18,220 BTC (12% of the weekly total).
A pause to evaluate the movements of the Bitfinex Hack 2016
An interesting thing that also happened this week, specifically on April 14, is that there were 63 trades from the address 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 for the hacker it will be difficult to sell them. What could have happened 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 its almost 120,000 BTC, with a value of more than US$ 7.4 billion. But does this explain why Bitcoin falls right now? Not exactly.
Bitcoin performance: drops below 50-day SMA
At the time of writing 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 fall has been well below the 50-day simple moving average (SMA) support for the first time in six months. This could mean a deeper setback ahead. Although the fall seems typical of a bull market correction, it could extend further if prices find acceptance under the 50-day SMA.
Often these events invite stronger sales, especially from those who can be considered weak hands.
What was the cause?
From this fall we can say that Turkey’s decision to ban cryptocurrency purchases is throwing cold water on the BTC market. Also, CNBC he 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 shares and Bitcoin 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, moves by the direction of a BTC hacker, whale deposits in Binance before the fall. These are all factors that seem to have influenced this drastic movement on Sunday. It’s too early to ensure what Bitcoin whales might be thinking of doing next, but those who sold in the middle of the week may be looking to take the tokens from those who decide to sell in the face of the fall.
A Bitcoin recovery could be expected, as this weekend the Coinbase Premium Index ( % ) hit 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 higher the Coinbase spot buying pressure.
CryptoQuant CEO Ki Young Ju assured a few hours ago that the estimated leverage ratio decreased slightly, but remains high. The market is not afraid, it is still greedy. In this scenario we would recommend not to succumb to emotions or fear if Bitcoin falls further, and evaluate all available data.