Massive Bitcoin Outflows on Coinbase Continues As Price Approaches $30,000
January 2nd, 2021
Bitcoin (BTC) continues to scale new heights hitting a new all-time high above $29,600. The Bitcoin investors’ activity has been clearly pointing at a sustained bull run ahead. The recent price surge to $30,000 comes on the backdrop of heavy buying happening on Coinbase in the last 48 hours.
There are massive massive Bitcoin outflows registered on the Coinbase Pro exchange in the last two days. CryptoQuant CEO Ki-Young Ju notes that over 12,000 BTC have moved out of Coinbase to multiple cold wallets for custody, and this could be facilitated by big OTC deals.
Breaking 30k is going to be tough, but institutions don’t care. They just buy it more.
— Ki Young Ju 주기영 (@ki_young_ju) January 1, 2021
These OTC deals are usually conducted by institutions buying in huge quantities. While it is difficult to predict the OTC transaction volumes, some of the strong on-chain indicators are helpful to predict OTC deals. Here’s an interesting thread from the analyst that explains how to spot OTC deals based on some parameters like Fund-flow ratio on exchanges and transaction volumes coming from other non-exchange wallets.
On the other hand, people have been depositing huge stablecoins on exchanges. The stablecoin deposits hint at a bullish signal since this is equivalent to cash deposits at exchanges for buying crypto.
— j.o (@jobtcfx) January 1, 2021
If we look at the weekly Bitcoin chart below, any dips after the rally have seen a huge transaction volumes surge. Analyst Joseph Young notes that Coinbase users have been heavily buying the dips recently. Pointing at the recent BTC price surge between $27,800 -> $29,350, Young adds: “Don’t bet against Coinbase $BTC dip buyers. These guys are the same people who rescued Bitcoin when it dropped to $16ks in November”.
However, Joseph Young states that Bitcoin can face strong resistance at $30,000 just at it faced before moving past $20,000. At $30,000, there are huge sell orders building up on Binance and Bitfinex. He says:
“I expect Bitcoin to react to $30,000 the same way it did when it first neared $20,000. I genuinely don’t think it will break on first try. There are fat *FAT* sell walls on Binance and Bitfinex. Still, some investors, possibly high-net-woth investors, clearly don’t care”.