BTC Tanks Under $47K Despite Bitcoin Exchange Supply At 31-month Low, Big Hands Buying?

By Bhushan Akolkar
December 14, 2021 Updated December 16, 2021
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A brutal sell-off strikes once again in the crypto market with the Bitcoin price crashing under $47,000 on Monday, December 13. As of press time, Bitcoin seems to have recovered from the Monday lows and is currently trading at $47,198 with a market cap of $890 billion.

Interestingly, despite the Bitcoin price constantly staying under pressure, the BTC supply at the exchanges has been reducing simultaneously reaching a 31-month low. As on-chain data provider Santiment reported:

Bitcoin’s supply on exchanges hasn’t been this low in 31 months, according to @santimentfeed data. Prices have been volatile as of late, but the lack of $BTC moving to exchanges right now is a positive sign that major selloff risk should be limited.

Courtesy: Santiment

While many have been comparing the recent market sell-off to that in May 2021 as the Bitcoin (BTC) price has already corrected nearly 40% from its all-time high of $69,000. Crypto market analyst Will Clementele says that there’s one key difference though between May’s correction and that in the current one.

During the May period, there was a major sell-off by strong hands. However, strong hands are buying this time, he says.

Willy Woo: No signs of Further Sell-off Cascade

Major long positions for Bitcoin futures have been liquidated in the recent price correction suggesting a kind of reset. Besides, based on the buy/sell heatmap, crypto analyst Willy Woo says that buying the dip has been clearly visualized. He adds:

Buying the dip visualised (spot volumes seen on-chain). It has been happening, it’s moderate, but most importantly, as yet there’s no signs of a further sell-off cascade. Also worth keeping in mind longs have already been flushed.

Courtesy: Willy Woo

While the retail investors continue to face a test of patience and anxiety, the on-chain data has been hinting at strength. Will this translate into a good pullback or not remains to be seen.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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