Bitcoin Price Dump 'Not Going to Happen', Says CEO of Crypto Analytics Tool | Cryptoglobe

www.cryptoglobe.com 2020-10-13 13:29
Reading time: ~2 m

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.”

These are historical charts for All Exchange Inflow Mean(24h MA). Above 2BTC is a pretty unusual situation.

Join our Telegram channel to get sophisticated whale signals.https://t.co/gnUU2QURa5 pic.twitter.com/gSQgMRAzeH pic.twitter.com/d3UDZc2Vvn

— Ki Young Ju 주기영 (@ki_young_ju) October 13, 2020

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.

Featured image via Pexels.