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Bitcoin traders, you should watch out for these BTC moves

3min Read

Here’s how Bitcoin’s price could be affected after high volumes moved places.

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  • About 42,870 coins moved within one hour, marking the highest in the last six months.
  • BTC might drop below $42,000 due to lack of demand.

In less than 20 days into 2024, Bitcoin [BTC] has already seen its largest transactions. Moreso, the coin’s highest level of hourly movement in the last six months, also happened on the same day, Santiment data showed.

According to the post on X, a transaction involving $665.3 million worth of BTC happened on the 16th of January. On the same day, a total of 42,870 BTC moved among different addresses.  This occurred specifically between 3 pm and 4 pm UTC on the said date.

BTC to skip selling pressure

At press time, AMBCrypto had not yet ascertained the reason for the large movements. But we can confirm that it was not geared at plunging BTC’s value.

At the time of writing, on-chain data showed that Bitcoin’s exchange inflow was 126. This aligns with the thesis that the transaction would not put selling pressure on the coin.

Also, the exchange outflow was 391, confirming that it was likely a non-exchange wallet to another non-exchange wallet transaction.

Bitcoin exchange inflow and outflow

Source: Santiment

So, BTC is unlikely to be affected by the large movements. At the time of writing, Bitcoin exchanged hands at $42,790. But it is noteworthy to mention that the price ran up to $43,000 earlier.

However, the 4-hour chart showed that BTC might find it hard to rise significantly in the short term. This was because of the indications shown by the Exponential Moving Average (EMA).

At press time, the 20 EMA (yellow) was above the 9 EMA (blue), suggesting that the short-term trend was bearish. Should the positions remain as they were, then the coin price risked falling below $42,000 as it did a few days back.

A notable upside is not an option

In terms of the Money Flow Index (MFI), AMBCrypto noticed that the reading climbed.

But the notable jump happened on the 16th of January and was crucial to the initial increase to $43,000. However, the MFI reading had stalled since it tapped 59.61. This indicates that the buying pressure Bitcoin experienced had slowed down.

In a situation like this, there is a high chance that the price moves in a tight trading range. Indications from the RSI also confirmed the bias. As of this writing, the RSI could not rise above its midpoint. So, there is a high possibility of further downside.

Bitcoin price analysis on the 4-hour timeframe

Source: TradingView

Unless bulls change the state of things, BTC might drop below $42,000. In addition, AMBCrypto assessed the Weighted Sentiment and Bitcoin Funding Rate.


Read Bitcoin’s [BTC] Price Prediction 2023-2024


At press time, the Weighted Sentiment was -0.033, indicating that most market players were not bullish on BTC. Also, the Funding Rate has remained at the same spot for most of the year.

Bitcoin Funding Rate and Weighted Sentiment

Source: Santiment

This suggests that longs are not aggressive with their positions. It also means that a lot of liquidity has not entered into BTC contracts as it seems that participants are considering other options.

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Victor is a full-time journalist at AMBCrypto. Before his sojourn into the world of journalism, he was a “buy the top, sell the bottom” merchant while doubling as a sales funnel copywriter. Victor’s focus is the exciting on-chain landscape of the cryptocurrency market and its underlying technology. His other interests include politics, Afrobeats, sports, and marketing.
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