Bitcoin price has changed during the week. Specifically, as of March 23, an uptrend in the price of Bitcoin started, and it is valid to say that perhaps crypto whales may have influenced this.
Since March 24, 17,758 BTC have been brought to different exchanges from unknown wallets, according to Whale Alert notifications. This is the total of 13 transactions during these three days. OKEx, Huobi and Binance are the three exchanges that were used for it.
Regarding this, it should be noted that the seven-day average of the number of transfers to exchange addresses has fallen by 35%. Specifically, it has dropped from 33,303 to 21,048 in the last 12 days. Tuesday’s figure of 21,048 was the lowest level since August 26, according to blockchain intelligence firm Glassnode.
Furthermore, the selling pressure has been significantly weakened with the displacement of weak hands (investors) and speculators due to the drop in the price of Bitcoin.
Continuing with this idea, we have to note that 26,369 BTC were carried to unknown wallets through 22 transactions in the last three days. This means that crypto whales pulled a lot of liquidity from the market. Some of the exchanges employed were Huobi, Binance, Coinbase, and Bitfinex.
This can create the idea that the price of Bitcoin is manipulated by crypto whales.
Bitcoin price overview
This can be explained by the fact that investors generally move currencies to the exchanges during the bear markets and withdraw funds from the exchanges during the rises.
When crypto whales and general market players draw liquidity, it is a sign that investors are currently reluctant to trade or sell at the current Bitcoin price and believe in the long-term viability of the cryptocurrency.
That could be the case. Even though the cryptocurrency has failed to top $ 7,000 this week, currency deposits have continued to drop. Investors probably would have moved their currencies to the exchanges if they had not been confident in the price increase.
Overall, the likelihood that the Bitcoin price will collapse due to massive liquidations seems pretty low. So far, Bitcoin is around $ 6,700, representing a gain of over 70% from the low of $ 3,867 seen on March 13, according to the CoinDesk Bitcoin Price Index.
In order to talk about a bearish signal of the price of Bitcoin, we must pay attention to the support lines. Right now, we should be talking about a bearish signal if it approaches $ 6,400. This has been the average of the lower level in the last four days.
On the other hand, at the upper level the barrier to break would be close to 7,000 USD. A move higher would revitalize the uptrend and allow an increase to the resistance range of $ 7,700 – $ 7,800. Considering the fall in currency deposits, the bullish scenario seems likely.
Given this scenario, we could the price of Bitcoin is not necessarily manipulated by crypto whales. What we can affirm is that they are acting accordingly and perhaps the fact of removing liquidity from the market will help BTC to approach the level of resistance that it must break.