With exchanges receiving large volumes of Bitcoins recently, this could mean an impending heavy sell action on the rise. Meanwhile, several metrics show no signs of potential upticks anytime soon. So, it is safe to say that bears are still calling the shots on the primary coin.
Bitcoin Price Falls
Bitcoin responded in divergence to the general opinion that the Ethereum merge would benefit most digital assets. While a couple of ETH-paired tokens yielded double-digit profits, BTC lost more digits. CoinMarketCap recorded a 0.8 percent fall in its intrinsic value within twenty-four hours, setting its price at $19,907.
Although Ethereum has not recorded any significant upside movement since merging, neither has Bitcoin. Indeed, both assets have not stopped plunging after the upgrade. Investors are curious about what could cause the unexpected reaction.
Now that the merge is out of sight, no fundamentals are pointing at a positive reaction from either coin. Initially, investors and analysts had banked on the merge to stir an upward momentum. While a few risked their funds on the bet, others chose to sit duck and watch the outcome.
According to CMC, Bitcoin shed 16% in the space of one month. Following the Consumer Price Index release, the coin plummeted by 10 percent. Right now, there are still no proper indication of a possible pump.
On-chain metrics revealed sellers are actively playing their hands in the market.
Bases Behind Bitcoin Bearish Bias
Santiment released new data on cryptocurrency inflow and outflow activities on its exchange. The information stated that it saw a boost in Bitcoin inflow since the month started. 1.69 million Bitcoins valued at $33.5 billion moved into its space betwixt September 7 and September 14.
The bourse admitted it had not witnessed this much transfer volume in BTC since October 2021. An influx this much indicates a jump in sell pressure. In turn, the market can expect to see a plunge in assets’ market value.
Also, CryptoQuant noted a rise in Bitcoin inflow to exchanges after the FED released August CPI results on September 13. Furthermore, it revealed that many of the wallets moving their Bitcoins are three to six months old whales’.
In addition, IntoTheBlock published information suggesting a heavy descent in Bitcoin whales’ net flow for August. Whenever this metric rallies high, it says that BTC’s large pocket investors are increasing. On the other hand, a decline implies a reduction in large-scale holders.
However, going back to the last three months’ net flow readings from IntoTheBlock, the record shows consecutive falls. Also, according to its resources, whales own over one percent of cryptocurrency circulating supply.
Usually, a rise in the number of whales precedes a hike in the intrinsic value of a digital asset. But in this case, with the numbers reading lower instead, it could signal a possible fall in market value.