Bitcoin is currently trading at around $51k at press time. The largest digital currency by market capitalization spent most of this December below $50k and went to as low as $45k at one point before recovering back to current levels. While the price uptick above the key $50k level was much needed, the cryptocurrency needs to continue on or else some whale sellers will be back soon enough to spoil the party.
Bitcoin is currently looking to break upwards of the current $52k barrier but is facing bearish roadblocks ahead. While some data suggests that the total amount of crypto left in crypto exchanges is now less than 1.3 million Bitcoin (6.5% of total supply), some analysts have shown that new inflows are being made into to crypto exchanges soon after the move above $50k. While none of these bulls have made a move to sell the newly transacted crypto, it has upset the balance a little, making buyers nervous going into the market. These new Bitcoin transfers aren’t a lot in value but they have had some effects on the overall market situation.
Data from on-chain analytics website Crypto Quant shows that some of these bulls have just moved their crypto to exchanges. The indicator Exchange Whale Ratio Indicator which is the proportional value of large whale inflows divided by total number of inflows is at a one-year high. While there is a general trend of moving crypto away from exchanges right now, this indicator shows that whatever inflows are being made into the online trading platforms, whale contributions are at highest levels.
According to CryptoQuant:
“It is better to watch out until BTC breaks $51k levels…..,Once we surpass this level next significant resistance will be around $56,8k”
So, there is plenty of uncertainty around the move above. As we head into Christmas and the last week of 2021, there are mixed signals at the moment and nothing can be said for sure. However, the chances of a santa rally, no matter how slim still remain. All Bitcoin needs to do is to move above $52k convincingly and go towards $56k. While on paper, it is not much of an ask for the digital currency, psychological and graphical restraints keep pulling it back. The increase of whale share in the total inflow of exchanges does show whale movements but none have sold so far so there is a silver lining. Perhaps these whales are looking for a particular figure around which they can sell their crypto, but that level hasn’t been reached right now.
Image Source: pixabay.com
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