Is Bitcoin About To Skyrocket? Bitfinex Analysts Spot Familiar Patterns From December 2020
17 April 2024 - 10:00AM
NEWSBTC
According to analysts at Bitfinex, Bitcoin and its recent activity
on exchanges reflects a pattern reminiscent of December 2020,
hinting at a possible growth phase. The exchange’s latest report
highlights a significant decline in the supply of Bitcoin held by
long-term investors on centralized exchanges, reaching its lowest
levels in 18 months. This trend, coupled with the forthcoming
halving event, suggests a scenario conducive to further price
appreciation, as stated by the analysts. Related Reading: Bitcoin
Has Next Major Demand Zone At $56,000: Brace For Impact? Potential
Growth On The Horizon The Bitfinex Alpha report underscores the
diminishing inactive supply of Bitcoin, particularly those assets
stagnant for over a year. This reduction implies that long-term
holders either reduce their positions or transfer their assets off
exchanges. Such actions are fundamental to understanding Bitcoin’s
price dynamics, especially as the halving event approaches. With an
increasing number of BTC leaving centralized exchanges and a
decrease in inactive supply, the market is primed for “potential
growth,” according to Bitfinex analysts. They add that this mirrors
the conditions observed before the significant market surge in
December 2020. On a broader scale, data from CryptoQuant
corroborates Bitfinex’s observations, indicating a continuous
decline in Bitcoin exchange reserves since July 2021. This decline,
which has seen reserves plummet from 2.8 million to approximately
1.94 million, suggests a sustained trend of Bitcoin leaving
exchange wallets. Bitcoin Latest Price Action Meanwhile, Bitcoin’s
price performance has taken a downturn, notably beginning late last
week Friday and continuing throughout the weekend. The top crypto
witnessed a significant decline, plummeting from above $70,000 to
as low as $62,000. Notably, this downward trend has persisted over
the past 24 hours, with the asset experiencing a decrease of 4.6%
during this period and over 10% in the past week, leading to its
current trading price of $62,034 at the time of writing. Amidst
these price movements, signs of panic have emerged within the
Bitcoin market. Recent data from Whale Alert sheds light on a
significant transfer involving 7,690 BTC, valued at $483 million,
to Coinbase, the largest cryptocurrency exchange in the United
States. 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 7,690 #BTC (483,425,557 USD)
transferred from unknown wallet to Coinbase
Institutionalhttps://t.co/olrmzaQdHx — Whale Alert (@whale_alert)
April 16, 2024 While details about the origin of the address,
“1Eob1,” remain undisclosed, it’s important to recognize that such
transfers to exchanges often signal potential intentions to
liquidate holdings. This occurrence typically suggests a readiness
to sell off assets within the crypto sphere. Related Reading:
Bitcoin To Go ‘Ballistic’ After Halving, Says Top Analyst – Here’s
Why Furthermore, should the entity responsible for this transfer
decide to sell off the entirety of the deposited BTC, it could
potentially exert a notable influence on the broader Bitcoin
market. Featured image from Unsplash, Chart from TradingView
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