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Bitcoin Plunges Below $33,000 – Coinbase Whales Behind the Dump

January 21, 2021 at 13:43 by Mark Stevenson

On Thursday, January 21, the price of one bitcoin sank by more than 7% in 24 hours, breaking below the $33,000 mark. According to the head of the analytical resource CryptoQuant, Ki Young Ju, Coinbase whales are behind the dump of Bitcoin pouring onto the exchange.

“Of course, bitcoin will reach $100,000 this year, but in the short term, if we do not see significant buyer pressure from Coinbase Pro, I think Bitcoin will enter bear territory,” the head of CryptoQuant wrote on his Twitter page.

The price of Bitcoin is already trading below the $33,000 level and has so far reached a low of $31,351 at 21:11 GMT.

However, Bitcoin still has room to fall. As part of the previous correction on January 11, the price of the leading cryptocurrency dropped to $30,239.

Battle of the Bitcoin whales

It is noteworthy that the current pressure on the price of the flagship cryptocurrency came from Coinbase, from which, on the contrary, they expect an influx of large capital.

Source: Ki Young Ju

The Coinbase Premium Index reached negative values, which indicates an excessive number of people who want to get rid of the cryptocurrency.

“Coinbase whales need a BTC drawdown to consolidate,” Ju suggested.

The head of CryptoQuant calls for monitoring the outflow of funds from Coinbase since it is by the recipient of the funds that the future price can be predicted.

Basically, a significant outflow of Bitcoin from Coinbase goes to cold wallets. According to Ju, big capital is putting cryptocurrency into custody in this way, which could mean that the bullish trend will continue in the long term.

In the meantime, the market continues to be buzzing with retail investors. At around 13:20 GMT, the price of the BTC/USD pair was trading at $32,697.

Source: TradingView

If you have any questions and comments on Bitcoin today, use the form below to reply.

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