Bitcoin moved for over $ 5 billion in minutes – what happened?
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 “either @whale_alert (a bot tracking large and suspicious cryptocurrency transactions) is broken or billions of dollars worth of BTC have been moved within minutes.”
In fact, Whale Alert registered more than . 00 0 BTC (worth about $ 1 million) within 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 that plays 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 (~ $ 522, 6M) are now parked in this address. “He points to a new address, in Thousands of coins are deposited.
As to the reasons for 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 now exchanging things, analysts are thinking 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 distract from bear market levels.
The Network Momentum Tracker tracks the movement of coins to determine the usage of the network. This is something that is often observed six to ten weeks before the start of a bull run, says Swift.
That is not all. He added that the cryptocurrency is above their 350 daily simple moving average.
This is important because the price movement and holding 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 will be explosive until January of February .) 00 0 to . .
Text Proof: newsbtc
Last update: Friday, December 6 728