Bitcoin (BTC) is bought aggressively at prices close to $ 30,000 when bidders start sucking liquidity from short-term sellers.
Data from the network monitoring resource CryptoQuant shows that bitcoin exchanges started dumping BTC reserves again at the end of December.
BTC is clearly attractive at today’s level
After a period of traders sending BTC to exchanges, perhaps to sell or get rid of large losses, the exchanges now see more outflows than inflows.
Between December 7 and 28, 2021, BTC reserves on 21 major platforms controlled by CryptoQuant increased from 2.396 million to 2.428 million bitcoins.
After that, the long-term downtrend resumed, and the stock exchanges amounted to 2.366 million BTC as of Monday, even though the spot price was at a low level of six months.
Bitcoin exchange reserves vs. BTC / USD Chart. Source: CryptoQuant
Ki Yong Joo, CEO of CryptoQuant, believes that the old whales, despite their impatience in recent years, can still cause price reversals.
“It looks like bitcoin is being sold in USD to new players at the top or bottom,” he said in a tweet thread on the matter, noting that institutions have probably been the main buyers since 2020.
Whales dive (again)
At the same time, it is known that the dynamics of the exchange balance now coincide with a significant demand for the network from large investors.
Related: Illiquid supply “rising mercilessly” – 5 things to watch out for in bitcoin this week
As mentioned on CC15Capital’s Twitter account this week, the hit of $ 33,000 was accompanied by a multi-million dollar purchase of BTC, specifically from one wallet.
Since August, the account has collected over $ 1 billion in BTC from a starting balance of zero.
This phenomenon also comes on the basis of the firm will of long-term contract holders not to sell. As reported by Cointelegraph, coins that have not been moved in a year or more now make up 60% of the total bitcoin supply.
Meanwhile, a cluster of whales appeared elsewhere in the wake of a $ 69,000 fall to a record high.