After months of sideways action, Bitcoin [BTC] price swings are getting bigger and faster. Meanwhile, large holders are sending more BTC to exchanges, which usually means they may be getting ready to sell.
Here’s what you need to know.
The calm phase is over
Source: Alphractal
According to Alphractal, the biggest swings happened between 5-6 February.
The world’s largest cryptocurrency dropped by 14.3%, then quickly bounced back by 12.2%. Moves like this usually mean heavy liquidations on both long and short positions.
Source: Alphractal
Following this shakeout, both 30-day and 180-day volatility charts moved higher – which isn’t anything out of the ordinary. When volatility stays low for weeks or months, the price often reacts in a sudden and aggressive way.
Source: Alphractal
This could also be a warning for leveraged traders. Positions can be wiped out quickly on both sides during heavy swings like this. Risk increases quickly.
Whales feel the heat
Data tracking Binance inflows from large holders (100+ BTC) highlighted a rise in coins moving to exchanges as Bitcoin fell from $95k to near $60k.
Average monthly inflows climbed from around 1,000 BTC to nearly 3,000 BTC. There was a massive spike of about 12,000 BTC on 06 February alone.
Source: Cryptoquant
Since 01 February, seven trading days have recorded more than 5,000 BTC in daily whale inflows. That’s unusually frequent.
Spikes like these usually appear during both market tops and panic sell-offs. Right now, more people are selling – Something that is worrying as there might be less money flowing in the market.
Is pressure still building?
At the time of writing, Bitcoin was trading well below its 20-day MA near $77,000, with the crypto valued at $67,800. Here, it’s worth noting that the drop towards the $60,000-zone was followed by only a weak bounce.
Source: TradingView
The RSI was below 40, so the pace was still tilted to the downside. Meanwhile, the DMI highlighted bearish control, with the negative trend line firmly above the positive one.
So, here’s the verdict – Volatility has returned, whales are active, and the trend might be fragile.
Simply said, market bulls still have some work to do.
Final Thoughts
- Bitcoin volatility has been rising fast, with whale inflows indicating sell-side pressure.
- In bearish conditions, the $60k-zone will be a key level to watch.
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