Bitcoin (BTC) slipped below $ 33,000 for the first time in over a week on Jan. 21 as sales pressure gathered to drive price action lower.
Coinbase Premium drops sharply
Data from Cointelegraph Markets and TradingView showed that BTC / USD continued its decline on Thursday, dropping 7.% on the day and unable to bounce off $ 33,000 support.
The latest move, which brings Bitcoin down over 13% compared to its peak from Tuesday, came amid increased sales at Coinbase Pro, the professional trading arm of US cryptocurrency exchange Coinbase.
As Cointelegraph reported, large spikes in volume in Coinbase Pro had coincided with price volatility in recent weeks. This time, it was a drop in the so-called “Coinbase Premium” that signaled an impending sale – the price difference between the BTC / USD pair at the venue and others dropped sharply.
“$ BTC sellers seem to have come from #Coinbase. The Coinbase Premium Index has been a negative value since an hour ago,” said Ki Young Ju, CEO of analytics resource on the CryptoQuant chain, summarized on Twitter uploads the accompanying chart.
Coinbase whales might want $ BTC to go lower for consolidation. “
A day earlier, Ki had pointed to a corresponding increase in deposits across whale exchanges, citing a potential desire to trade or sell BTC at prices at or below the mid-range of its $ 30,000 to $ 40,000 trading corridor.
Battle of the Bitcoin whales
Another trend since Bitcoin began to soar to new highs has always been the transfer of wealth from small investors to whales, with the latter buying the supply at all prices.
Despite the sale, buyers hit the headlines this week, mostly among investment giant Grayscale, which fixed its largest-ever BTC purchase worth more than $ 600 million. In the 24 hours to the end of Wednesday, the company increased its balance by a further 8,000 BTC – far more than the supply added to the market by miners.
At a virtual conference this week, CEO Michael Sonnenshein outlined adopting the state’s digital assets and increasing the interest of financial advisors as two of the major trends that will characterize 2021 believe.