Yerevan — Bitcoin extended its decline on Monday after notching a new record high above $61,000 during the weekend session as traders’ focus shifted on a $1 billion value transfer between two mysterious wallets.
Data analytics platform CryptoQuant noted that a whale deposited 18,000 BTC to his/her Gemini exchange wallet, fearing that such a large transfer pointed towards an imminent sell-off in the Bitcoin market. Nevertheless, CryptoQuant’s competitor Glassnode refuted the data, stating that the said transfer took place between two Gemini wallets, illustrating that the exchange was moving funds within its private ecosystem.”
“This is incorrect info,” CryptoQuant responded to Glassnode’s claim in its latest tweet. “The source of funds is not Gemini if you track down transactions. They don’t use P2SH addresses for user deposits wallets which prefix starts with ‘3’. It is supposed to start with ‘bc1’ or ‘1’. This is NOT an internal transfer.”
Bitcoin Wobbles
The Gemini FUD damaged Bitcoin’s prospects of retesting $60,000 after it dipped below the psychological support level on Sunday. The early European session on Monday saw the benchmark cryptocurrency falling to as low as $54,568. However, Glassnode’s comments prompted traders to buy Bitcoin at its sessional, leading to a minor rebound ahead of the New York opening bell.
The latest pullback in the Bitcoin market also surfaced owing to a stronger buying sentiment inside the $54,000-55,000 area. Further upside cues emerged from the 20-day moving average (the green wave) that has historically determined Bitcoin’s short-term market bias. Above it, the cryptocurrency signaled sustaining its prevailing bullish bias.
Bitcoin risked correcting below the 20-DMA wave to retest ascending trendline support that constitutes a Rising Wedge pattern. The cryptocurrency has been consolidating inside the structure since February. So, its likelihood of bouncing back from its lower trendline looks higher. Should it happen, the price could move towards the Wedge’s resistance, eventually testing $60,000 for a bullish breakout.
“I think structure looks good right now and likely this is just a wick to hurt over-leveraged positions, if we could see a daily close above $57,500 then that would be insane,”
noted an independent analyst on Twitter.
Exec: Corporate Sell-Off Anticipated
In an email statement to CoinChapter, CEX.io Executive Director Konstantin Anissimov anticipated Bitcoin to reach $60,000 but showed little conviction that the cryptocurrency would rally any further.
“While this forecast holds true in the short term spanning the next few days, the action of corporate investors who may be looking to take profit as the first quarter draws near may push the price of BTC well below $50,000 support level in the weeks starting in April,”
he warned.
Bitcoin was trading at $56,550 at this press time.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
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