The price of Bitcoin is dependent on many factors to remain afloat. Investment interest from big whales and institutional players have been driving the market’s bull run for the most part of this year.
But as the FUD heightens, it has been speculated that the players behind Bitcoin’s dominance are pulling out of the market. However, on-chain data has clarified that this isn’t entirely true.
Bitcoin market readjusts
While a lot of big players may have stepped out of the market during the bloodbath from Mid may, they only make up the minority (aka weak hands) whose entrance to the market can be traced back to the early part of the year.
“Point I’m trying to make: STHs selling offset buying from LTHs by -31,262 over the last month. However, LTHs are now offsetting STHs by +32,071 over the last week, +5,884 in the last 24 hours. Might see another short-term move down, but the accumulation process is almost complete.” writes Williams Clemente, who is still very bullish on the benchmark cryptocurrency.
Bitfinex may record a major dump in the following weeks
However, the corn Vern for many Bitcoiners is that although bitcoin has been recording a massive inflow of funds from exchanges, the intense market activities have not been reflected in the charts. Data from CryptoQuant shows that trading activities are not in sync with exchange net flows.
“One thing that makes me worried about BTC is exchange netflows. There are many Bitcoins flowing into exchanges lately but the trading volume is still relatively low. BTC needs more trading volume to digest increasing exchange inflows.” writes Ki-Young Ju, after noting the imbalance between inflows and trading volume, as the latter surging simultaneously with the former could send Bitcoin to new levels.
In another tweet, he notices the market dump that has been recorded on leading exchanges like Coinbase and Binance. However, Bitfinex is reportedly yet to absorb the dump. Should the market lose more money to expired long positions, or another external factor causes the price of Bitcoin to go down, Ju asserts that Bitfinex might feel the heat this time.
“If dumping happens again, it might come from Bifinex. Most of the exchanges have digested most of the BTC inflows after the plunge. Except for Bitfinex. All eyes on Finex whales .”
Analyst William Clemente confirmed this in a reposed tweet, noting how short positions have been piling up on the exchange.