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Bitcoin Price recorded a 6% correction today with a daily low of $53,470 falling from a daily high of $58,471. The price correction of $5,000 created fears of further downside among traders, however, on-chain analysts Ki-Young Ju pointed that the Fund Flow Ratio of Bitcoin on all exchanges is around 7% which is considerably low, given the fund flow has exceeded 16% in March last year when BTC price fell by 50%.
The Fund Flow on exchanges indicates that most of the BTC transactions occurred outside the exchanges primarily on OTC desks. Another on-chain analysis showed that big whales in the range of 100 BTC -1000 BTC are still accumulating while smaller whales have started to take profit.
Fund Flow Ratio for all exchanges is still very low like 7%, meaning 93% of transaction volume on the $BTC network happened outside of the exchanges.
This ratio was 16% a day before the great sell-off in March 2020.
Chart https://t.co/o4k4puMWUE pic.twitter.com/ahsjExNQGG
— Ki Young Ju 주기영 (@ki_young_ju) March 23, 2021
Bitcoin price has recorded major corrections of nearly 20% on more than one occasion at least once over the past three months, thus a correction of just 6% should not cause a worry about Bitcoin reaching its potential top.
As per Young,
“Whales tend to realize profits when retail investors are active in the market. … Bitcoin price is likely to go up when whales are active in the market in the long term.”
Bitcoin Options Expiry Another Cause of Volatility?
Bitcoin options contracts expiry had historically led to Bitcoin price volatility a week before the actual expiry date. This was observed last month as well when over $4 billion worth of Bitcoin contracts were expiring. With nearly $6 billion worth of Bitcoin Options set to expire this Friday.
Big quarterly expiry this Friday with 117k #bitcoin options dropping off pic.twitter.com/Pxe0tURf1p
— skew (@skewdotcom) March 22, 2021
The expiry of contracts is seen as a bullish signal overall as Wall Street traders rush to buy in more contracts post expiry, however, the price movement also registers a spike.
Many Bitcoin analysts believe we are far from reaching Bitcoin top even in the short term, with the likes of Max Kieser adjusting their short-term price target to $77K from $65K. Bitcoin veterans believe a price crash of over 30% added with increased exchange inflow could be a possible sign of reaching the top, but anything around 20% correction is considered normal during a bull run.
The post Bitcoin Fund Flow Continues to Decline on Exchanges, Analysts Predict Bull Run to Continue Post Correction appeared first on Coingape.
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