- BTC’s foreign exchange reserves increased, indicating high selling pressure.
- Derivatives investors were still buying BTC when the price fell.
Bitcoins [BTC] The price reached an all-time high on March 6 when the value rose above the $69,000 mark. However, the trend quickly changed when the price of the king of cryptos dropped significantly.
Meanwhile, the market behaved differently as whales continued to accumulate at a time when millions of dollars worth of BTC were being liquidated.
What’s going on with Bitcoin?
After touching a new ATH, the price of the king of cryptos witnessed a correction as it fell by over 6% in the last 24 hours. According to CoinMarketCapAt the time of writing, BTC was trading at $64,488.27 with a market cap of over $1.27 trillion.
As the price of the coin fell, the large holders continued to accumulate. According to a recent tweet from IntoTheBlock, large Bitcoin holders have increased their holdings by 4,177 BTC in the last seven days, which is worth more than 279 million at current prices.
Surprisingly, Ali, a popular crypto analyst, revealed that a significant amount of BTC was liquidated as whales continued to gather. The tweet reported that nearly $164 million in Bitcoin long and short positions had been liquidated across the board in the past 24 hours.
To see what’s actually going on around BTC, AMBCrypto looked at the coin’s on-chain metrics. According to our analysis of CryptoQuant’s factsBTC’s foreign exchange reserves increased.
Moreover, the net deposit of BTC on the exchanges was also high compared to the average of the past seven days. These two statistics suggested that selling pressure on the coin was high.
Source: CryptoQuant
However, when we checked Satiment’s data, a different story emerged. We discovered that the supply of BTC on the exchanges decreased.
In the meantime, off-exchange supply of the coin rose slightly, meaning investors still bought BTC even after the price fell below $64,000.
Source: Santiment
A look at investor sentiment around BTC
Although the price of the coin fell, derivatives investors found the right opportunity to buy more BTC. This was the case because the financing rate was high.
Moreover, the taker-buy-sell ratio remained green, meaning buying sentiment was dominant in the futures market.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2024-25
As for market sentiment, BTC social volume remained high, which can be attributed to recent price volatility.
Since the coin’s price fell, bearish sentiment around the token rose, as evidenced by the drop in weighted sentiment.
Source: Santiment