Bitcoin Whales Accumulating as Exchange Deposits Signal Bearish Momentum

16 July 2021, 15:00 GMT+0000
Updated by Ryan James
16 July 2021, 15:00 GMT+0000
In Brief
  • Bitcoin whales continue to accumulate as the price declines.
  • However, an increase in deposits to exchanges could signal further downside for BTC.
  • Bitcoin is currently down 9.95% in July, and 51% since the all-time high in April.
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Bitcoin whales continue to accumulate the crypto, while exchanges see an increase in deposits, potentially signaling bearish selling pressure. 

Bitcoin has hit a new monthly low of $31,000 for July. However, according to on-chain analysis firm Santiment, large bitcoin addresses continue to accumulate as the price declines. 

Santiment stated that the ‘millionaire tier’ of addresses that hold between 100 and 10,000 BTC continues to climb. “The cumulative amount of holdings for these whales has increased by 100,000 BTC since May 21,” Santiment stated. 

Source: Santiment

BTC continues to look bearish

While it may appear that bitcoin whales are accumulating BTC on the dips, CryptoQuant has previously stated that the bitcoin bear market was confirmed on June 21. The on-chain analysis company reiterated that “too many whales are sending BTC to exchanges.” 

CEO of CryptoQuant, Ki Young Ju recently tweeted that “BTC selling pressure seems to be high.” According to Ju, the indicator shows that the exchange whale ratio is over 85%. “When this indicator constantly keeps above 85%, the market has usually been bearish.”

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Source: CryptoQuant

BTC volume surges

On-chain analysis from Glassnode also indicates some interesting facts. The company indicates that bitcoin is trading near the lows of a significant on-chain volume node

Bitcoin has seen over 1.86 million bitcoin transacted on-chain, between the $31,000 and $34,300 price range. This equates to 9.93% of the circulating supply. “This is now convincingly the largest realised volume cluster since $12k,” Glassnode stated.

Source: Glassnode

Bitcoin is currently priced at $31,800. Down almost 10% for the month of July, while being down a hefty 51% since the all-time high of $64,000 set in April. 

Source: Tradingview

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.