Ki Young Ju, the CEO of cryptocurrency analytics firm CryptoQuant, has said on social media he believed a bitcoin price dump is “not going to happen,” as the price of BTC rises towards the $12,000 mark.
In a tweet, Ki highlighted CryptoQuant’s mean exchange inflows metric, which is currently below the so-called “danger zone,” suggesting bitcoin whales have not been moving their funds to cryptocurrency exchanges, presumably to take profits off of BTC’s recent price rise above $11,000.
The CEO explained that the metric indicates how many whales are active on cryptocurrency exchanges, and that any figure above 2 BTC is considered to be in the “danger zone.”
Ki’s comment came after the price of bitcoin surpassed the $11,500 in a move up after it broke the $10,000 to $11,000 range it had been trading under since the beginning of September. CryptoCompare data shows that back in August BTC tested the $12,000 numerous times, but failed to surpass it.
The mean exchange inflows metric Ki shared shows that n early March, ahead of the coronavirus-induced market crash that saw top U.S. equities markets enter bear market territory and BTC lose about half of its value, exchange inflows surpassed the 5 BTC mark, well into the danger zone.
Bitcoin whales seemingly started selling BTC after the flagship cryptocurrency’s mean exchange inflows surpassed 2 BTC on March 9, a day after the price of bitcoin dipped below $6,000. Notably, other metrics appear to show the market is not due for a correction just yet.
The Crypto Fear & Greed Index is currently flashing “Greed” in the continuation of a move up from “Fear” last month. This implies BTC’s price still has more upside, with the market generally being due for a correction when it flashes “Extreme Greed.” Ahead of the September price drop, for example, the index was close to 80 out of 100.
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