U.Today – According to on-chain data provider Lookonchain, a whale or institution has deposited 2364 (BTC) worth almost $140 million on one of the world’s largest cryptocurrency exchanges, Binance. This massive move, which took place a few hours ago, has sparked speculation in the cryptocurrency market.
Deposits to exchanges typically indicate an intent to sell, while withdrawals suggest an intent to buy. It is unclear whether this movement signals a sell or a strategic play.
According to Glassnode’s latest weekly report, net capital inflows into Bitcoin have slowed in recent months. This suggests that some degree of equilibrium has been reached between investors taking profits and losses.
It is worth noting that the inflow of capital into the Bitcoin market is rarely so petite – 89% of days see a larger inflow of capital (excluding bear markets, where losses predominate).
After reaching all-time highs of nearly $74,000 in mid-March, fresh investors’ confidence was tested by several months of volatile, sideways price action. In the process, most of the Bitcoin supply remained safely contained within the three- to six-month age range.
Bitcoin Price Outlook
According to Glassnode, the market has been in a structural downtrend for over five months, followed by a period of consolidation and accumulation.
This view is supported by analytics firm CryptoQuant, which pointed out that Bitcoin’s market cycle indicator is once again in a bearish phase. This observation was made by CryptoQuant’s head of research, Julio Moreno, who also stated that from a valuation perspective, if Bitcoin price breaks through $56,000 on the downside, there is a risk of a bigger upside correction.
At the time of writing, Bitcoin is down 1.05% in the past 24 hours to $59,005 amid volatile price action this week. The leading cryptocurrency is heading toward a bearish close in August, having already fallen 8.44% this month.
Despite the feeble trading activity in Bitcoin, Santiment noted that the number of Bitcoin whales is growing. In just one month, there was a net enhance of 283 wallets holding at least 100 BTC, and the current number of such wallets on the network is 16,120, a 17-month high.
