Bitcoin Handover to Rich Wallets Underway as Price Declines: Analyst

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Bitcoin fell on Monday after hitting a new record high in the previous session, indicating a surge in profit-taking sentiment among day traders.

The analogy was visible in the statistics of an independent analyst on Twitter. The pseudonymous entity recorded a decrease in the number of newly created or active Bitcoin addresses by 11.5 percent and 12 percent. Wallets with more than 1,000 Bitcoin units, on the other hand, rose 0.11 percent.

“Big money is buying the dip while the market is shaking,” he added. “As always.”

Bitcoin addresses statistics shared by xCeaserBitcoin addresses statistics shared by xCeaser. Source: Twitter

Resilience to Bitcoin Bears

The BTC / USD exchange rate rose to $ 49,700 on Sunday, its lifetime high before falling down in subsequent sessions. On Monday, the pair established a session low near $ 45,850, then retraced its bullish move to regain $ 48,000.

In doing so, it showed resilience to bears, especially when they tried to bring the price below key support levels like the 20-day exponential moving average (green) and the 50-day simple moving average (blue).

Bitcoin price is calling for $ 48,000 back after a falling rejection on Monday. Source: BTCUSD on TradingView.com Bitcoin price is reclaiming $ 48,000 after a declining rejection on Monday. Source: BTCUSD on TradingView.com

This raised expectations that BTC / USD could make another bullish attempt towards USD 50,000, a psychological goal it has tried to achieve but to no avail. Bulls believe that a closing price above $ 50,000 could push prices as high as $ 65,000 in the upcoming sessions.

Another high ahead of all time?

Bitcoin’s transfer from low-balanced to rich wallets continued to reflect a long-term growth scenario in the market. The small traders sold their cryptocurrency holdings to secure short-term profits, but turned them over to investors who gave tailwind to the so-called HODLing feeling in which people “hold” Bitcoin for at least six months.

In a separate chart, the blockchain analytics platform CryptoQuant noted a decrease in the number of Bitcoin units held by exchanges.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin reserves on all exchanges. Source: CryptoQuantBitcoin reserves on all exchanges. Source: CryptoQuant

The picture above shows a strongly negative correlation between Bitcoin price development and its reserves on cryptocurrency exchanges. So it seems that a lack of adequate BTC credit tends to give the market bullish tailwind – and vice versa. This prompted the analyst to place up bets on the benchmark cryptocurrency.

“In the truest sense of the word, a liquidity crisis on the sales side right before our eyes,” he explained. “Don’t sell your corn to Elon or Saylor. At least wait and sell your corn to Apple when they inevitably buy more than $ 200,000 in the next month. “