BTC is struggling to break the resistance of $50,000 after dropping from $58,000 to $48,000.
Tracking on-chain activity is an important parameter to understand the price action for an asset. We saw a major drop in price when around 2700 BTC were deposited on a spot exchange from a wallet. BTC dropped from $58,000 to $48,000 which was the biggest drop in a single day for this asset. Watching BTC outflow and inflow to and from exchanges is a helpful tool.
Major BTC movement from Coinbase
In the past few hours, it was observed that there was a major BTC outflow from the cryptocurrency exchange Coinbase. As per CryptoQuant, it was observed that there was a major BTC outflow from Coinbase.
Coinbase Custodial Wallets
Over 13,390 BTC moved out of Coinbase. This a very high quantity. As you can see from the graph, whenever there is a spike in BTC outflow, it indicates that a lot of BTC was bought and it was followed by a price rise.
These BTC moved to various Coinbase custodial wallets. This suggests that US institutional investors are buying BTC at this price as well and could signify a price rise in this asset in the near future.
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Images courtesy of CryptoQuant
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