It was a week when the market response was particularly difficult. Cryptoquant explained in the last article that the buying movement of coinbase whales is emerging as a very important market indicator, and to confirm this, it is necessary to check the’coinbase premium’.
Bitcoin has moved sideways between $30,000 and $34,000 on the 25th, which is the beginning of the week. The singularity was observed on the 28th. Bitcoin, which had fluctuated around $30,000, suddenly formed a strong coinbase premium of about $273.
Over the course of about two days, the price of Bitcoin rose to around $34,000 again. Although the price rose by more than 13% from the low, the premium was still strong. Around $34,000, the price of Bitcoin on Coinbase Exchange remained at a gap of $170 compared to Binance.
After that, there was a strong sell-off by bitcoin mining groups. Looking at the number of bitcoin deposits sent to the exchange from all miners’ wallets registered on CryptoQuant, around $34,000 per hour, the highest frequency of remittances per year was made. Since then, the price has dropped to 32,000 dollars.
Cryptoquant believes further declines will continue at this point. This is because the rate of whale activity in the exchange was high and the sale of miners continued. However, the direction of the market went unexpectedly. Bitcoin rose more than 18% to $38,000 in just one hour, as Tesla CEO Elon Musk tweeted hinting at a bitcoin buy around $32,000.
In retrospect, it was inevitable
— Elon Musk (@elonmusk) January 29, 2021
It’s a post-mortem analysis, but in fact, it’s hard to say that this kind of surge occurred in the short term with one Twitter of Elon Musk. Regardless of the fluctuations and fluctuations in the price that followed this week, it is speculated that the influence of whale investors was to some extent in the point that there was a large amount of coinbase whales accumulating around $30,000 to $34,000.
The strong sell-off by miners still continues. Bitcoin, which rose to 38,000 dollars, fell by 15% on the 30th, the next day, and as of the 31st, it is moving sideways at around 33,000 to 34,000 dollars.
What will the Bitcoin price be this week? During the 30-day decline, a considerable number of inflows of stablecoin exchanges were observed. In terms of price range, it is around $33,000. Therefore, in the short term, it seems highly likely to defend $33,000. However, if miners and whales continue to sell and do not generate additional coinbase premiums, it is highly likely that we will see a long black on the Bitcoin chart in the near future.
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