If you’ve been on crypto-twitter in the last few hours, you’ve probably noticed the excitement of big BTC transactions. CoinDesk’s Wong Joon Ian writes that is broken or BTC worth billions of euros has been moved within a few minutes.
In fact, Whale Alert registered more than 10 transactions in excess of 50,000 BTC (worth about $ 400 million) in about twenty minutes.
Many analysts now believe that these transactions signal the low point for the Bitcoin price – or that a strong decline for BTC is imminent. For traders, transactions are probably none of this.
Why are billions moving in Bitcoin?
So why are the funds moving? What does this mean for Bitcoin? And who is the creature playing around with the leading cryptocurrency worth hundreds of millions?
Well, first, the funds were not moved by several companies. As the research director of The Block, Larry Cermak, points out, “it’s the same address that keeps moving the same bunch. The 55,337 BTC (~ $ 410,6M) are now parked at this address. “He points to a new address where thousands of coins are deposited.
As for the reasons behind the movement of funds, Whale Alert has itself stated that the transactions are likely to be “peeling transactions”, which is “normal behavior for wallets using many exchanges”.
At the moment, it is not clear that the “scrubbed” funds are being used or which stock exchange is involved in the transactions. Some say it’s Bitfinex.
Forerunner of the bull run?
While the increase in transaction volume appears to be due to an exchange that is now exchanging things, analysts think that the rise in bitcoin’s on-chain metrics indicates an impending price bull run.
Philip Swift, the creator of Look Into Bitcoin, writes in a ten-part Twitter thread that the next macro BTC bull run is near. One of his main arguments is that Bitcoin’s Network Momentum Indicator has started to move up and divert from bear market levels.
The Network Momentum indicator tracks the movement of coins to determine how the network is being used. This is something that is often observed six to ten weeks before the start of a bull run, Swift said.
That is not all. He added that the cryptocurrency is above its 350-day simple moving average.
This is important as the price movement and keeping above this moving average has “always indicated the beginning of the Bitcoin bull markets”. And even the golden-section multiplier – an equation that the analyst has created to analyze the BTC price – implies that the cryptocurrency could see an explosive move to $ 12,000- $ 13,000 by January.