The price of Bitcoin achieved a new all-time high above $42,000 on January 8. At the time, there was a high premium on Coinbase, which meant U.S. buyers drove up the market by aggressively accumulating BTC, but there is continuous selling pressure coming from Asia, and particularly from South Korea.
Bitcoin corrected sharply after rising to $42,000, declining by over 7% in about eight hours. The sell-off coincided with significant whale activity across major exchanges. Trading activity in the altcoin futures market also demonstrated a similar trend.
The Bitcoin market is currently seeing a battle between whales taking profit on their positions and new buyers in the U.S. market accumulating BTC. As such, there has been consistent extreme volatility ever since Bitcoin surpassed $30,000.
The key metrics to observe are Bitcoin outflows from Coinbase and stablecoin inflows into major exchanges. When high-net-worth investors purchase Bitcoin, they prefer to move the BTC out of centralized exchanges for security purposes.
According to researchers at Whalemap, as long as BTC remains above $38,719 and $38,700, which are two major whale cluster areas, the bull trend of BTC remains intact.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.