- The formation of a bearish continuation pattern known as an inverted pennant has become clear as Bitcoin prices fluctuate in a consolidating manner.
- Binance has recorded a notable spike in whale inflows, suggesting an increasing supply of coins available for trading.
- The Cryptocurrency Fear and Greed Index reaching 10% indicates the pessimistic sentiment of market participants.
Bitcoin prices fell about 2% during U.S. market hours on Tuesday, closing at $67,521. The decline follows declines in tech stocks and gold as geopolitical tensions rise again, indicating a common macro-driven move. Selling pressure continues $BTC It has been fluctuating within a narrow range around $70,000, indicating a lack of initiative from buyers and sellers. Moreover, on-chain data shows a decisive spike in the whale inflow ratio, suggesting increased activity of large holders and the risk of a prolonged correction in the future.
Whale transfers to exchanges hint at possible future volatility $BTC
CryptoQuant’s on-chain metrics show an interesting spike in large holder activity on Binance during the current Bitcoin market downturn. A metric called the whale inflow ratio, which measures Bitcoin deposits from the 10 largest trades divided by the overall inflows to an exchange, smoothed by a seven-day moving average, jumped from about 0.40 to 0.62 between February 2nd and February 15th.
This change indicates a significant increase in the amount of inflow. $BTC This period saw inflows from major wallets on a scale not seen in the past two years. Such patterns often correlate with an increase in the availability of tradeable coins on the platform as large participants transfer assets from personal storage to exchange accounts.
Analysts attribute this rise to a variety of factors. One that comes to mind is Garrett Zinn’s wallet, also known as the “19D5” or “Hyperunit Whale.” He transferred about $10,000. $BTC on Binance in recent weeks. Beyond this isolated player, there is extensive data on a variety of important remittances flowing into exchanges due to their high liquidity amid volatile conditions.
The surge comes as Bitcoin retreats from previous highs, with the price testing the lower range before hovering around $67,000 to $68,000 in mid-February. Investors of all categories appear to be adjusting their positions in the face of uncertainty, resulting in an influx of large currency deposits from large holders.
Historically, whales migrate $BTC This was due to a combination of a significant adjustment in foreign exchange rates and increased selling pressure.
Bitcoin price analysis reveals major bearish continuation pattern
The price of Bitcoin has been fluctuating around $70,000 for the past two weeks. Consolidation has struggled to sustain deviations from the aforementioned levels over time, suggesting a lack of confidence on the part of buyers or sellers.
However, a closer analysis of the 4-hour chart shows that the price movement resonates within two converging trend lines, revealing the formation of an inverted pennant pattern. A dominant downtrend, displayed by a long downtrend line and a triangle formation, indicates a pattern formation.
$BTC/USDT -1 day chart
In theory, this triangle acts as a breathing period for sellers to replenish bearish momentum before the next breakdown. If the chart setup holds true, Bitcoin price is poised for a bearish breakdown from the pattern’s bottom trendline at $67,200, with a post-break decline that could send the asset down another 18% to $55,000.
