The past few weeks have been tough for the leading cryptocurrency. After a heavy correction down to around $84,500, Bitcoin rebounded to hover near the $92,000 mark.
Unfortunately, the tide turned again yesterday. So what can we expect in the coming period? And what are the charts telling us?
Bitcoin Inflows to Crypto Exchanges Are Surging #
On Friday, Bitcoin lost significant ground, with the price dropping from over $92,000 to $88,800. The asset is now fighting to prevent further damage, but the question is whether it will succeed.
Several charts suggest that a major price movement may be imminent. First, we’re seeing a significant increase in Bitcoin inflows to the crypto exchange Binance.
The simple moving average (SMA) of these inflows showed a peak in late November, a level not seen since March of this year. Historically, such signals have been followed by further corrective moves, so Bitcoin traders are watching this chart closely.
Whales Are Massively Moving Their Bitcoin to Exchanges #
Additionally, there’s a notable rise in Bitcoin whales (large investors) moving their coins to trading platforms. The ’exchange whale ratio’ indicator shows a value of 0.47 across all platforms, reinforcing the trend of whales transferring more of their Bitcoin to exchanges.
While these transfers might not seem alarming at first glance, there’s a strong possibility that whales are moving their coins with the intent to sell. And that is precisely the fear currently gripping Bitcoin traders.
Large Stablecoin Inflows #
Finally, the Binance platform has seen a significant increase in stablecoins. It recorded a massive 946,000 USDT in inflows in just one week.
Such movements typically occur when traders are preparing for potential volatility, allowing them to enter the market at a favorable price, for instance, after a sharp correction.
The question now is whether this volatility will indeed materialize, and if so, when. The psychological $90,000 level is crucial. With the price already dipping below it yesterday, the question is whether it can reclaim this ground. Perhaps the battle for that level is already lost, and traders should be looking down instead.