Due to three-month-high coin inflows to central exchanges (CEXs), the number of Bitcoin whales has been rapidly declining.
Glassnode, a market tracker for Bitcoin (BTC), has released several bearish indicators. These include data suggesting a market exit by whales holding at minimum 1,000 coins and an exchange inflow of more than 1.7million coins. This is the highest level since February.
#Bitcoin $BTC Exchange Inflow Volume (7d MA) just reached a 3-month high of 1,755.021 BTC Previous 3-month high of 1,729.605 BTC was observed on 08 May 2022 View metric:https://t.co/1S6EbDkdOO pic.twitter.com/8kSJPOLJXW
— Glassnode Alerts (@glassnodealerts May 9, 2022
BTC inflows to CEX are high, which suggests that whales may be selling coins in order to get out of the market. This could also be a strategy to help prepare for a market downturn. Cointelegraph reported that the recent sell-offs were likely to have been executed by short-term investors who had accumulated coins in February and January, when prices reached a low of $34,800.
Hard data has shown that the Bitcoin Fear and Greed Index dropped to 11 because of unfavorable market outlooks. The index measures the level of fear and greed among Bitcoin investors.
Bitcoin Fear and Greed Index is 11 — Extreme Fear Current price: $34,041 pic.twitter.com/PQK3x6YMok
— Bitcoin Fear and Greed Index May 9, 2022 (@BitcoinFear).
BTC daily transactions are not being affected by the negative sentiment, despite this. According to YCharts on-chain data, there were 233892 daily transactions valued at $30 billion on May 8. This is about the average monthly transaction since January.
Glassnode’s lead on-chain analyst, “Checkmate,” tweeted Sunday that “Many of your are waiting for Bitcoin ‘capitulationwick’,” partly confirming the belief that investors expect BTC will continue to fall. Capitulation wicks are usually marked by a sudden and severe drop in price. This was the case for the March 12, 2020 plunge of 43%, which saw BTC plummet to $4,600 in one day.
Many are anxiously awaiting the #Bitcoin “capitulation wick”. It will happen, and it is THE capitulationwick. However, most people won’t buy it. The fear of it being too real will keep them away. This is how it has always been and will continue to be. Tip: Make a plan and stick to it
— _Checkmate (@_Checkmatey_ May 8, 2022
Related: Bitcoin price target now at $29K, trader warns about Terra’s $285M “FUD” attack
Caleb Franzen, a market analyst, tweeted Sunday to his 11,000 followers that investors should expect markets to trend downward. He said that his analysis suggests that we will be “short-term bearish” and that it was worth “expecting more pain.”
According to Cointelegraph data, BTC is down 10.39% in the last seven days and trading at $33,806
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