Bitcoin Price Shows Signs of Local Top Amid Whale Alerts
Bitcoin (BTC) appears to have reached a local top around the $44,000 price range, with on-chain whale activity indicating a distribution phase.
A whale-alert Telegram bot has been consistently triggered by significant Bitcoin inflows into centralized exchanges. These alerts were first reported on CryptoQuant by Onchain Edge on December 22, suggesting a potential top for BTC.
Notably, three whale alerts on December 11, 20, and 22 revealed that the mean inflow of Bitcoin across all exchanges surged above 15 BTC. The recorded means were 26.96 BTC, 15.56 BTC, and 18.15 BTC respectively.
Bitcoin Price Analysis Amid Whale Alerts
As of press time on December 23, Bitcoin is trading at $43,721 and has returned to a solid price range. This range was initially entered on December 5 for the first time since April 2022 but was lost briefly on December 11 coinciding with the first reported whale alert.
Bitcoin managed to retest the range support multiple times around $42,800 before successfully re-entering it on December 20 during the second whale alert.
The recent third whale alert reporting a mean inflow of 18.15 BTC across all exchanges could potentially lead to another significant price movement within this range, which currently tops out at $44,729.
Ultimately, future developments will determine whether Bitcoin enters a bullish or bearish trend. It is worth noting that Bitcoin is currently displaying strong momentum on the Relative Strength Index (RSI), suggesting possible price increases even as whales take profits and distribute their holdings amidst rising demand.
Hot Take: Bitcoin Faces Key Moment as Whale Alerts Suggest Local Top
Bitcoin’s recent price action and on-chain whale alerts indicate a potential local top around the $44,000 zone. The consistent inflows of Bitcoin into centralized exchanges, as highlighted by the whale-alert Telegram bot, suggest that whales are distributing their holdings.
While BTC has returned to a solid price range and is showing strong momentum on the RSI, the mean inflow of Bitcoin across exchanges during the third whale alert could spark another significant price movement. It remains to be seen whether this will result in a bullish or bearish trend for the leading cryptocurrency.
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