Over 13,000 BTC was transferred from addresses associated with crypto exchanges on February 4th. The transactions suggest BTC may be ready for another bullish rally. However, there’s more to these transactions than meets the eye.
BTC worth $123 million moved
Transaction data from Blockchair.com shows two gargantuan Bitcoin transactions that were made over the past few days. The transactions are worth $123 million. Is this the beginning of the bitcoin rally up to the $30,000 mark or is it a series of suspicious transactions?
162bzZT2hJfv5Gm3ZmWfWfHJjCtMD6rHhw transferred approximately 4278 BTC (~$100 million) to itself and 1000 BTC (~23 million) to 1G47mSr3oANXMafVrR8UC4pzV7FEAzo3r9. This transaction happened on February 4th at 5:16 am UTC. At the time of the transaction, the transaction value was around 123 million.
The next day, 1G47mSr3oANXMafVrR8UC4pzV7FEAzo3r9 transferred 800 Bitcoin to 14kmvhQrWrNEHbrSKBySj4qHGjemDtS3SF and transferred approximately 199 BTC to itself. This transaction happened at 4:45 am UTC. The total transaction was worth around $23 million.
1CkRppkLL6CdKRWqfKroXxtLT1Rf3n6ndf transferred approximately 8085 bitcoins to two Coinbase addresses – 38MfJkxPkpwsZxkyfESwjdaKBdXrV8DpWr (~1648 BTC) and to 15SNd23bGvG5Jy8jmWbf1kFpxzmPEAP5so (~6437 BTC)
BTC has been rising at a healthy rate since the start of the year. The upside momentum encountered equal downside pressure at the start of February. Presently, the price is moving sideways. However, it’s likely that this may the eve of a the rally up to the $30,000 level.
162bzZT2hJfv5Gm3ZmWfWfHJjCtMD6rHhw is a Gate.io address. Gate.io is one of the largest cryptocurrency exchanges out there. Gate.io has the highest number of coins listed on any exchange (1593).
BTC price is possibly in the early stages of an uptrend
All the Exponential Moving Average (EMAs) indicators are now horizontal which means that the price could hover around the $23,000 level for some time (a few days..?). At least, it’s not hard to believe that the price may not plummet any time soon (fingers crossed).
The Relative Strength Index (RSI) reading indicates the BTC price is in the overbought zone. However, it is in the overbought zone sine January 23rd and is making a gradual return back to the green zone.
The Moving Average Convergence Divergence (MACD) shows bearish momentum (not as strong as previous days’ bullish momentum, yet) since end of last month.
On the other hand, the one-hour time frame shows that bitcoin may be in the early stages of an upside trend. The 100-day and 200-day EMA are almost horizontal and the smaller EMAs demonstrate a upward movement. And the MACD indicates distinct bullish momentum.
Basically, over the daily chart, technical indicators should warn investors to HODL for a little longer and the smaller time frame gives more reason to HODL and expect an bullish trend.
From an economics perspective, the bearish momentum may have been triggered by the European Central Bank’s (ECB) recent interest rate hike. The central bank upped its benchmark interest rate by 50 basis points and signalled another hike before considering an end to its hawkish policy stance.
Address in Gate.io transaction may not be clean
In the transaction involving Gate.io the receiver address 1G47mSr3oANXMafVrR8UC4pzV7FEAzo3r9 in that transaction has been associated with suspicious activity in the past, including ransomware attacks and possibly money laundering.
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.