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Bitcoin Shows Slight Recovery – These Are The Reasons For The Correction

Bitcoin is currently recovering after a painful market correction. At the time of publication, Bitcoin was trading at $ 48,762. It shows a loss of 7.5% over the last 24 hours and a still strong gain of 53.4%.

Analyst firm Santiment has released a report on the market correction. He claims that there was an increase in BTC inflows to the exchanges before the massive drop in prices.

Bitcoin BTC

Bitcoin BTC

Source: https://twitter.com/santimentfeed/status/1363948579744808962/photo/1

Among the influxes to exchange, a whale stood out from the crowd. As Santiment reported, the ‘second biggest’ Bitcoin transaction of the year took place with an estimate of 2,700 BTC. Indeed this whale also made a transaction in March 2020. This just before the massive sale which will appear in the history books of Bitcoin under the name of “black Thursday”.

Bitcoin Whale Season

Most of the funds appeared to have been directed to Gemini who received around 33,870 BTC. The IOMAP indicator groups the inputs and outputs of Bitcoin. The company sets a strong support level at $ 48,000 due to a “wall” created by 777,900 addresses. If that support doesn’t hold up, IntoTheBlock registers another major support level between $ 45,000 and $ 46,000 with 532,000 addresses.

Monitor Whalemap sets support at $ 48,500 and $ 46,500. However, he estimates that the price of BTC could resume the uptrend when it returns above $ 55,400.

A report from Glassnode predicts a new phase of consolidation for Bitcoin with support of $ 48,000. The research firm noted an increase in whale activity over the past year. Addresses with funds between 1,000 and 10,000 BTC increased by 14.18%. This is done from March 2020 to February 2021.

These addresses showed a reduction in their funds or rather a restructuring. Glassnode doesn’t necessarily attribute it to a massive sale. On the contrary, they note that many large transactions could be routed to cold wallets.

Bitcoin BTC

Bitcoin BTC

Source: https://insights.glassnode.com/the-week-on-chain-week-8-2021/

From the findings of Glassnode, it is possible to deduce that in the long run the accumulation pattern will continue. The stock market performance of institutions that have invested in Bitcoin is overwhelmingly positive. MicroStrategy is up 614%, Tesla is up 70% since they bought BTC. With Bitcoin’s volatility declining, forecasts point to a large institutional adoption of cryptocurrency in 2021. Therefore, the outlook remains optimistic in the long term.

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