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BTC Drop Indicator – Technical Analysis

BTC Drop Indicator

BTC dropped by $10,000 yesterday from $58,000 to $48,000. This was the biggest drop in the history of BTC.

BTC drop or rise can be speculated by a variety of parameters. Some use charts to identify tops and bottoms. Some use fundamentals like upcoming forks, halving, upgrades, institutional level buying, etc to speculate the price movements in BTC.

One of such indicators is exchange inflow and outflow of assets. Let us take Santiment for example and review the BTC price movement.

Santiment

Santiment provides  variety of data and tools to speculate price action of assets. One such tool is the exchange inflow and outflow of assets from certain wallets.

Exchange Inflow

There was a 11x increase in the exchange inflow. This spike led to the correction of BTC from $58,000 towards $48,000.

Prominent Wallet Movement

After analyzing more data, it was observed that a particular wallet was responsible for the second largest BTC transaction of this year. 2700 BTC which approximately equals to $156.6 million at BTC peak price was moved from this wallet to a spot exchange. This probably triggered a dump in BTC price. This same wallet had imported 2000 BTC during the 12th March 2020 BTC crash which was popularly named the Black Thursday event. In total, this wallet has made a movement of 91,935 BTC via 73 transactions in a year.

wallet

Such on-chain movements can be tracked via various tools and can provide a good insight of possible major market movements.

BTC is currently trading at a price of $49,000 with a market cap of $908 million.

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Images courtesy of Santiment

Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided.

Do your own due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. All rights reserved.

 

 




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