Where’s Bitcoin Going after Yesterday’s Dump? The On-Chain Stories #2

Here in this series of unknown stories, we talk about bitcoin and what’s happening on-chain. Stay tuned for more stories coming out this year.

Published in

Coinmonks

4 min readFeb 12, 2022

In the last story, I mostly spoke about the pullback to the upside was just a move fueled with volume because the market closed three consecutive weeks in the red. However, things might be a bit different; as bitcoin continues to hold the 42K mark, things keep getting better for bulls.

I might’ve been a dumbf*ck if I would’ve missed this one today. So let’s start with Large HODLers outflows cause anyone who’s seen at the start of bull run is them.

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Large Hodlers Outflow

Did you see that cute, edgy spike on 11th February? This might be one of the reasons to explain why bitcoin is still holding the 42K level. The large holders' outflow went to approximately the same levels as on Jan 30 and November 26. The market went up both of these times; moreover, on September 26, bitcoin was around the same price levels, and the outflows increased significantly, followed by an all-time high.

Global In/Out of Money

There are two charts to look at the present price levels. While bitcoin is at good support and the 35K to 41K level might hold in the long term, things look bleak in a shorter timeframe.

Since we did break the 43k level, it wouldn’t be hard for us to claim the 45k level. However, it’s very difficult for us to maintain it, as a strong resistance lies ahead. The only way to get through it will be a very high volume pump.

On zooming-in, the support at 42k is very weak since the volume is too low and staying at the current price levels is kinda unstable. So I think we can see bitcoin going sideways between 41K and 45K (Not considering when whales step in and pump the sh*t out of the market).

Total Volume in Futures

Once noobs start feeling that we’re going to the moon, the money starts flowing into the futures market. This gives whales an opportunity to sell off and cause a cascade of liquidations. The spike in total volume in futures on the 11th shows the reason for the drop, which might’ve occurred due to the longs getting liquidated. However, things seem to be returning to normal, as the volume started going back earlier today.

Bitcoin Balances on Exchanges

The bitcoin balances on Exchanges just hit a new low in the last three years on 10 Feb with just 1.65 Million bitcoins on exchanges. The last time this happened was in December 2018. I don’t know why I shared this one (duh, what else happened in December 2018, go see the charts).

I think that’s it for this part; I’ll be back soon with more awesomeness next week. Until then, grab a beer and enjoy the weekend.

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PS: Do your own research; I write whatever sh*t I see. So this is not a piece of financial advice (and if you buy/ sell with any of this info, don’t sue me. Can you, though?). Also, never take a bit of financial advice from an idiot bleh bleh bleh…

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