It was a beautiful solo stage that will be talked about for a long time to Bitcoin investors. Bitcoin showed a strong movement of around 22% during the three-day Christmas holiday from the 24th. Until November, the prospect of bitcoin could exceed $20,000 by the end of the year was dominant, but the price of bitcoin is now closer to $30,000 each. Most of the cryptocurrencies other than Bitcoin have been moving toward silence.
Why is Bitcoin price so strong? Cryptoquant said in its last article that as long as institutional investors continue to buy over the counter, the bull market will not end in the long run. In addition, we introduced three on-chain indicators to estimate the OTC (OTC) of institutional investors. In addition, on the 23rd, it was revealed through Twitter that the price of bitcoin is expected to exceed $25,000 without major adjustments.
At the time, Bitcoin was fluctuating around $23,000. Even though there were no indications, the reason for the clear outlook was that the global cryptocurrency coinbase caught on-chain movement that appears to be an over-the-counter transaction. In Coinbase, a total of 24,000 bitcoins were moved out of the exchange twice over the last two days on the 23rd and 24th. As mentioned in the previous article, withdrawals showing this pattern are likely to be the volume of OTC purchases by institutional investors.
12,006 $BTC flowed out from Coinbase a few hours ago.
As I said, it went to custody-looked-like wallets. It seems that Coinbase makes a new cold wallet for each customer after the OTC deal for institutions.
I’m very bullish on $BTC.https://t.co/MrM1IgzB3B pic.twitter.com/whmG287Pus
— Ki Young Ju Ki Young (@ki_young_ju) December 23, 2020
$BTC will break $25k without retesting $21k.
— Ki Young Ju Ki Young (@ki_young_ju) December 23, 2020
Cryptoquant announced that the bitcoins are divided into five or more wallets and stored in the trust wallet by attaching the movement path and transaction link of these bitcoins through CEO Joo Young’s Twater. In general, Coinbase OTC directly integrates the system with Coinbase Custody, and each time there is a customer, the wallet is divided into several and stored for each customer.
After this, during the three days of the Christmas holiday, Bitcoin hit another high and surged close to 23%. As of 8:00 pm on the 27th, Bitcoin is trading at about $283,000.
It is unclear how closely the aforementioned Coinbase OTC transaction estimation transaction actually relates to price. However, in terms of supply and demand, it should be remembered that in a situation where institutional investors buy a large amount of bitcoin without going through an exchange, the price is generally more likely to rise than to fall. Unlike in the past, this spot is the most interesting and unusual part of this bull market.
Many cryptocurrency analysts on Twitter recently predicted that the price of Bitcoin would drop to the level of $21,000 based on technical analysis of the chart. However, Bitcoin is continuing an unprecedented rise in the opposite direction. With the bitcoin price hitting the declared price every few days, institutional investors’ buying moves are accelerating. For now, predictions through technical analysis do not seem to be of much significance.
The current rise is similar to the 2017 bull market in that the reported price continues every day. However, it is a big difference that bitcoins are constantly being pulled out of exchanges. If you look at the Netflow indicator, which subtracts the amount of deposits from the amount of withdrawal to the exchange, as much bitcoin is exiting the exchange, which is incomparable to that of three years ago. If bitcoin exits the exchange, the amount that can be sold on the exchange decreases, so it can be interpreted as a kind of bullish signal.
The price of Bitcoin has already exceeded $28,000. It’s already a high enough price. However, the price drops when there are more people selling than those who buy. The current rise is expected to continue until the moment when large amounts of bitcoins for sale are deposited on the exchange.
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