Despite Bitcoin (BTC) Correction Exchange Outflows Continue, Will BTC Dip Further?

Once again, the cryptocurrency market is in a deep-red situation. Bitcoin (BTC) has tanked over 8% today moving to $46,000 following a strong global market correction in a risk asset sell-off. In a week’s time, Bitcoin price has plunged over 20% from its all-time high of $58,300 with bears dominating.

However, the on-chain activity shows that big players have been making most of the price dip. During Tuesday’s BTC price correction big giants like Purpose Bitcoin ETF, Sqaure Inc, and Microstrategy scooped a sizeable quantity of BTC.

The latest on-chain data from Grayscale shows that the illiquid supply in the Bitcoin network has surged past its circulating supply. It means the Bitcoin liquidity continues to see a sharp decrease with time indicating bullish signals ahead from Bitcoin.

Another popular market analyst and CryptoQuant CEO Ki-Young Ju that there have been massive BTC purchases by big players, on Coinbase, at $44K levels. Yesterday, Coinbase registered a net outflow of nearly 13K BTC suggesting strong institutional purchases at around $48K.

Bitcoin (BTC) Whale Addresses Returning in the Mid $40K Levels

Ki-Young Ju believes that big players will strongly defend $44K levels and a strong accumulation will happen in the range between $44K-$48K. Thus, any further BTC price correction in the range of 10-15% from the current levels seems unlikely at the moment.

Another data from Santiment shows that Bitcoin whale addresses holding over $1000+ BTC were dropping out as whales resolved to major profit-booking. However, these addresses have registered an uptick suggesting accumulation in the mid $40K levels.

In another major development, asset management giant Stone Ridge has filed with the U.S. SEC to become the first open-end mutual fund to buy Bitcoin (BTC). In the form N-1 A submitted to the U.S. SEC, Stone Ridge writes:

“[The] Bitcoin [strategy] seeks to generate returns by gaining exposure to the price of bitcoin by selling put options on bitcoin futures contracts. This strategy may also invest in pooled investment vehicles, such as registered or private funds, that themselves invest in bitcoin.

Thus, it is clear that big players continue to accumulate Bitcoins despite the recent price correction. On the other hand, historical chart patterns show that March has been a month of downward pressure on BTC for the last four years. Considering that Bitcoin has already rallied very strongly in 2021 and over the last year, we can expect some pressure or consolidation over the next month.