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Coinbase balance drops by 30K BTC as Bitcoin price nurses 6% losses

Bitcoin

cointelegraph.com 07 June 2022 16:43, UTC
  
Reading time: ~3 m

Bitcoin (BTC) held steady at the June 7 Wall Street open after a night of losses cost bulls heavily.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Coinbase sees conspicuous outflows

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it ranged near $30,000, still down 6% versus its prior highs.

After underperforming versus United States equities on June 6, the pair nonetheless managed to avoid falling further in step with stocks. At the time of writing, the S&P 500 was down 0.6% from the open, with the Nasdaq Composite Index 0.5% lower.

Analyzing order book data, on-chain analytics resource Material Indicators noted that a wall of bids from a whale “spoofing” the market in recent days had finally dissipated. Earlier, that entity had posted a support line at $29,000.

“Looks like the whale we've been watching spoof for over a week finally unloaded some BTC,” it revealed alongside a chart of the Binance order book.

“The $60M in bids we saw pop up just above $29k was broken into smaller blocks, moved into the active trading range and appears to have been filled.”
BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

Another intriguing event related to buying came from Coinbase Pro, the professional trading offshoot of major U.S. exchange Coinbase, which saw what appeared to be tens of thousands of BTC in outflows over the past 24 hours.

While potentially an internal transaction, an institutional client could now be in possession of around $30,000 BTC, according to data from on-chain analytics platform Coinglass.

Coinbase’s BTC balance thus returned to its lowest levels since May 16.

Coinbase BTC balance chart. Source: Coinglass

Bitcoin dominance hits 8-month highs

Amid a relative lack of volatility, attention focused on Bitcoin dominance over struggling altcoins.

Related: Bitfinex Bitcoin longs hit a record-high, but does that mean BTC has bottomed?

#BTC Dominance is breaking out from a macro Wedge

Best case scenario for Altcoins (blue path):

• Small relief -> strong decline -> future strong relief

Worst case scenario for Altcoins (orange path):

• Strong valuation decline -> small relief -> more downside$BTC #Bitcoin pic.twitter.com/dK5MjfqSSk

— Rekt Capital (@rektcapital) June 7, 2022

That dominance stood at 46.3% of the overall crypto market cap on June 7, Bitcoin’s highest since October 2021.

“Once we break out of the range high, that is when we will see capitulation begin on Altcoins and i will be looking to deploy capital on signs of a bottoming formation and accumulation,” trading account Crypto Tony told Twitter followers.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.


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