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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism
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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism

On-Chain Data: Bitcoin Whales Buy The Dip As BTC Drops To $39k

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 2:19 pm
3 mins read
Bitcoin Whales

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On-chain data shows a sharp spike in the Bitcoin exchange outflows, suggesting whales have been buying the dip to $39k.

Bitcoin Exchange Outflows Show High Value Suggesting Whale Activity

As pointed out by an analyst in a CryptoQuant post, the BTC exchange outflows have registered a large spike recently.

The “exchange outflows” is an indicator that measures the total amount of Bitcoin currently exiting wallets of all exchanges.

When the value of this indicator is high, it means investors are withdrawing a large amount of coins at the moment. Especially large values can imply whales have been buying.

Such a trend, when sustained, may be bullish for the price of the coin as investors usually transfer their crypto out of exchanges for accumulation purposes.

On the other hand, low outflow values suggest there isn’t much buying going in the market right now. This could either be neutral for the price, or if selling is going on, then it may be bearish.

Related Reading | Bitcoin Miners Receive Third Break This Year, Over 100K Blocks To Go Until The Halving

Now, here is a chart that shows the trend in the BTC outflows over the past year:

Bitcoin Exchange Outflows

The indicator's value seems to have observed a large spike recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin exchange outflow has shown a big value recently as the price has fallen below the $40k mark.

This suggests that whales may have jumped at the opportunity to accumulate more coins. During the three previous instances in the last year when outflow values on a similar scale were observed, the price of BTC observed an uplift not too long after.

Related Reading | Bitcoin Bear Market Comparison Says It Is Almost Time For Bull Season

It now remains to be seen whether a similar bullish effect will be there this time as well, or if the sellers will overwhelm the buyers and drive the price further down.

BTC Price

At the time of writing, Bitcoin’s price floats around $39.2k, down 5% in the last seven days. Over the past month, the crypto has shed 4% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

Looks like the value of the crypto has plunged down over the past twenty-four hours | Source: BTCUSD on TradingView

After holding above the $39k level for more than a month, Bitcoin finally dropped below the mark in the past day. This is a continuation of the decline that started late last month after BTC topped out above $47k.

Currently, it’s unclear when the price may observe some recovery. But if the outflows are anything to go by, then signs may be bullish for the crypto.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Reason to trust

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Created by industry experts and meticulously reviewed
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