It was a pleasant New Year’s first weekend. Bitcoin-dollar price based on cryptoquantity exceeded $30,000 at 8 pm on the 2nd. 30,000 dollars was not the end. Bitcoin price hit a new high of $34,649 at 4 pm on the 3rd, and then rises and falls at the $34,000 level at 9 pm at the time of this writing.
Compared to 0:00 on the 1st of this year, it has risen by about 20%. Why did this happen? Cryptoquant explained in its last article that the massive withdrawal of bitcoins from Coinbase, a global cryptocurrency exchange, is related to Coinbase OTC (OTC). Again, there was the same rising signal. As soon as the year changed, about 60,000 bitcoins were withdrawn from the Coinbase exchange.
Massive bitcoin withdrawals occurred three times. The first withdrawal occurred at 4pm on the 1st. It was when Bitcoin was moving sideways at the $29,000 mark. The second withdrawal occurred at 1:12 am on the 2nd. Both times were about 12,000 withdrawals. The price of bitcoin began to increase afterwards, and at 3 pm on the 2nd, an additional 36,000 withdrawals occurred.
12,063 $BTC just flowed out from #Coinbase. It went to multiple cold wallets. Possibly OTC deals.
Breaking 30k is going to be tough, but institutions don’t care. They just buy it more.
Chart https://t.co/fd0bnffmxI https://t.co/nxXkiZfIkJ pic.twitter.com/sRJPJAC5g9
— Ki Young Ju Ki Young (@ki_young_ju) January 1, 2021
Over 35k $BTC leave Coinbase. Most likely OTC deals, institutional investors buying #Bitcoin.
chart: @cryptoquant_com pic.twitter.com/awrLJ2rdDu
— Unfolded. (@cryptounfolded) January 2, 2021
After a large amount of bitcoin withdrawal from Coinbase, strong buying pressure hit Coinbase’s Bitcoin price window. Cryptocurrency analyst Joseph Young said that at the time Bitcoin surpassed $30,000, Coinbase’s Bitcoin-US Dollar was about $350 higher than the Bitcoin-Tether price of Binance, another global cryptocurrency exchange. Pointed out. It means that the Bitcoin market of Coinbase, the source of the bullish signal, was in an unusual overbought state.
Holy. There is a $350 gap between Coinbase and Binance right now.
This is unprecedented Bitcoin buying activity on Coinbase. pic.twitter.com/AmyUl4EsH3
— Joseph Young (@iamjosephyoung) January 2, 2021
Bitcoin, which is estimated for the purpose of large-scale OTC transactions, continues to be moved outside the exchange. This is a signal of a short-term price increase, but in the long term, it is also a sign of a shortage of bitcoins in the exchange. For nearly 10 years since the birth of bitcoin, the amount of bitcoin holdings on the exchange has been increasing all the time, but since February of last year, the amount of bitcoin outflow has increased noticeably.
This trend could lead to a sell-side liquidity crunch. It means that Bitcoin holders must send and sell bitcoins to cryptocurrency exchanges, and the price will drop. From mid-2020, this trend is accelerating further as institutions are buying bitcoin in large quantities.
Bitcoin is writing a new history. How far this rise will go is still unknown. As long as institutional investors who have entered the market buy bitcoin, the bull market is expected to continue without correction next week.
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