Key Points
- Bitcoin’s exchange reserve is increasing, suggesting high sell pressure.
- Despite a drop in price, derivatives investors are continuing to buy Bitcoin.
Bitcoin’s [BTC] price achieved a new high on 6th March, surpassing $69k. But the price soon fell significantly.
Interestingly, even as the price fell, whales continued to accumulate Bitcoin. This happened concurrently with the liquidation of BTC worth millions of dollars.
Price Drop and Accumulation
After reaching a new all-time high, Bitcoin’s price saw a correction of more than 6% in the last 24 hours. At the time of writing, BTC was trading at $64,488.27, according to CoinMarketCap.
Despite the drop in price, large Bitcoin holders increased their holdings by 4177 BTC in the last week, valued at over $279 million at current prices.
Crypto analyst Ali revealed that a significant amount of BTC got liquidated while whales continued to accumulate. Nearly $164 million in Bitcoin long and short positions were liquidated in the past 24 hours.
On-Chain Metrics Analysis
An analysis of CryptoQuant’s data showed an increase in BTC’s exchange reserve. Additionally, BTC’s net deposit on exchanges was also high, suggesting high selling pressure on the coin.
However, data from Satiment revealed a decrease in BTC’s supply on exchanges. The coin’s supply outside of exchanges increased slightly, indicating that investors were still buying BTC even after its price fell under $64k.
Despite the price drop, derivatives investors were buying more BTC due to its high funding rate. Furthermore, its taker-buy-sell ratio remained green, showing dominant buying sentiment in the futures market.
Market sentiment remained high for BTC, likely due to recent price volatility. As the coin’s price dropped, bearish sentiment increased, as shown by the drop in its weighted sentiment.
