Bitcoin Falls Suddenly After Unexplained $1 billion BTC Transfer to Gemini Exchange

Spread the love

Bitcoin plummeted more than 7 percent on Monday, after a whale had deposited 18,000 BTC into a Gemini wallet.

The flagship cryptocurrency fell to an intraday low of $54,568 at 0940 UTC, down 7.47 per cent at the European Session. His reversal began on Sunday after the price had hit a new record high above $61,000. Traders used the renewed peak to protect their gains, lowering costs. However, after the aforementioned Gemini deposit, the sell-off accelerated.

Analysts around the cryptocurrency industry viewed the allocation of $1 billion to the US exchange as a warning of a big dump ahead. CryptoQuant CEO Ki-Young Ju was able to find out the connection between higher bitcoin inflows and spot prices. He released a chart showing an increase in Gemini’s bitcoin inflow on February 21, followed by a downside reversal of more than 26%.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Spot Bitcoin and its correlation with Gemini inflow/outflow. Source: CryptoQuant

Bitcoin painted two high-volumed red candles on its four-hour chart just as the Gemini news went viral across social media, illustrating panic selling among retail traders. On the whole, the cryptocurrency shed almost 10 percent, or about $6,000, of its valuation in the previous six hours.


RECOMMENDED READ:  Why Storing Bitcoin in a Single Wallet is a Bad Idea

Analysts view huge inflows to cryptocurrency exchanges as a bearish warning. Traders usually pass Bitcoin to their wallets when they intend to exchange them later to deal with cryptocurrencies or fiat money. Conversely, bitcoins would be excluded from their trading addresses if they want to keep the cryptocurrency.

“This 18k BTC deposit is legit as it was a transaction between user deposit wallets and Gemini hot wallet,” noted Mr. Ju. “All Exchanges Inflow Mean is skyrocketed due to this deposit. Don’t overleverage if you’re in a long position.”

Around $1.41 billion worth of long entries got liquidated in the last four hours, according to “rekt” data provided by

“Volatile Retest”

After Monday’s sharp downturn, the technical chartists moved their downside goals to $50,000 lower.

The Independent Analyst observed that the BTC/USD exchange rate could sink to $51,860, a level that acted as a resistance to nearly $43,000 during the year-to-date low rebound of the pair. This is partially due to the BTC/USD decline below its local support area of about $58,000. (the redded range in the chart below).

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin slips below concrete support range, as spotted by Rekt Capital. Source: BTCUSD on

“The day is still young so [the] price could still resolve itself relative to this red boxed area and turn it into support,” the analyst added. “Technically, BTC is in the process of a volatile retest.”

In the short term, Bitcoin was checking the 50-day simple moving average wave as help.

 526 Interactions,  4 today

What is the concept of Crypto Arbitrage? – Earn Money With Cryptocurrency

Where there is a price gap between two or more exchanges, there is an opportunity for cryptocurrency arbitrage. Arbitrage is Read more

Central Bank of Nigeria (CBN) and Nigeria’s SEC iin talks about crypto regulation, 2020 crypto guidelines  suspension unchaged.

The Securities and Exchange Commission (SEC) of Nigeria has reported that discussions with the Central Bank of Nigeria (CBN) about Read more

Bank of Korea’s Governor is the first to criticize the “limitations” of crypto-assets.

In South Korea, there has recently been a large increase in crypto-investments. Unlike in the United States, regulatory authorities in Read more

Bitcoin Price Movement Analysis for 16th April, 2021

Today, the Bitcoin price is plummeting as buyers race to win after it hit an all-time high of $64,945. Bitcoin Read more

The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for Read more

RECOMMENDED READ:  Now We Know What Satoshi Nakamoto Looks Like
Finance authorities dismiss cryptocurrencies, in the wake of Coinbase’s IPO celebrations

Economic gatekeepers are taking a closer look at blockchain as mainstream coverage of the Bitcoin bubble and Coinbase listing intensifies. Read more

Romanian university intends to consider cryptocurrency payments for admissions fees.

The academic college, which has about 11,000 students, stated that the inclusion of crypto payments was part of a campaign Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Fidelity’s Tom Jessop on why Crypto has reached a “tipping point.”

The crypto market has gained traction as a result of low interest rates and fiscal stimulus, according to a Fidelity Read more

How arrests for attempting to obtain a hitman and a nuclear bomb demonstrate that the dark web is not always anonymous.

Paying with cryptocurrency does not guarantee your safety. Most of the criticisms levelled at cryptocurrencies is that its difficult-to-trace existence Read more

Bitcoin, BTT, Dogecoin Price Movement Analysis for 7th April, 2021

Bitcoin was expected to remain above the $55,800-support, a level that coincided with its 200-SMA. BitTorrent Token was projected to Read more

Leave a Reply

Contact Us