Bitcoin Analyst Highlights On-Chain “Signals” For Bulls to Kick-In

Bitcoin analysts are looking at Coinbase outflows and premiums as their immediate signals to predict the short term BTC price movements. Bitcoin price seems to be stuck between $35k-$40k having spent the past couple of weeks sitting between the same range after a massive correction of 10%.

Whales Are Depositing Bitcoin on Exchanges

The current bitcoin bull rally has been carried by various market players throughout the past three months, where institutional FOMO post block reward halving helped bitcoin break past its 2017 ATH, and later retail and whales also joined the party.

Bitcoin whale’s trade patterns are seen as a key indicator of market sentiment where if whales are moving their BTC stash out of exchanges, it is seen as a bullish move as they anticipate a big price move and thus want to sell at a higher price and vice verse.

Currently, whales are moving their bitcoin onto exchanges leading to selling pressure in the market driving the bearish sentiment in the short term. Ki-Young Ju, a crypto analyst believes an outflow of nearly 10k BTC from Coinbase the leading US crypto exchange can tilt the market sentiment in bull’s favor.

Yesterday one whale moved 6500 BTC from their Coinbase wallet to an unknown exchange, which even though a significant move could not help bitcoin to move past $37,0000. It suggests that a higher outflow of BTC would be required to come over the selling pressure.

Game of BTC Price Premiums at US and Asian Exchanges

At the peak of the bull market when the top cryptocurrency was trading above $40,000, there was a buying/selling game going on between Asian Whales and US whales. BTC was selling at a premium on Korean exchanges and many other Asian exchanges prompting Asian whales to sell their BTC holdings which were followed by aggressive buying by Coinbase whales creating up to $300 USDT price premium on BTC compared to other exchanges.

The price premium on Coinbase has become a synonym for aggressive buying thus indicating a bullish signal. As reported by crypto journalist Joseph Young increase and decrease in coinbase BTC price premium is forming a signal for predicting short term price price.

Analysts believe Coinbase Premium could well be an indicator of buying and selling pressure on exchange as during peak trading hours of the bull run Coinbase premium reached $150- $300, while as the market cooled down the price was trading $50 less than Binance.

Current Status Of BTC price Movement

The top cryptocurrency is still bullish in the long-term as analysts are pretty confident about the $100,000 price target by the end of this year, however, in the short term the top cryptocurrency seems to be dominated by sellers at the moment.

Bitcoin was trading at $35,403 at the time of writing with a 5% price correction over the past 24 hours. The top cryptocurrency has only seen a 2% gain in the past week while most of the altcoins managed to post double-digit gains over the past week.