$51K is the New Pivot Point for Bitcoin Bulls in 2021

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 Analysis shows that exchanges are being hit by large volumes of transactions as the BTC price action improves.

Bitcoin needs to clear $51K to reduce the chance of new sell-off from BTC whales

Markets News

This week, the Bitcoin (BTC), whales are back in the spotlight as large transactions flow back into exchanges.

On-chain analytics platform CryptoQuant data from Dec. 24 showed that whales are becoming more popular as potential sellers.

Bitcoin rises to $51,000 with action stations

CryptoQuant’s Exchange Whale Ratio indicator shows that the ratio of large inflows into exchanges to total inflows has reached a record high of one year.

As BTC/USD rose overnight to $51,000 on Thursday, inflows increased significantly. This could suggest that large volume investors are planning to make profits at the highest end of Bitcoin’s current range.

One CryptoQuant analyst warned that it is better to be on the lookout for Bitcoin breaking $51k levels.

“Once we surpass this level next significant resistance will be around $56,8k.”

Exchange Whale Ratio vs. BTC/USD annotated chart. Source: CryptoQuant

Despite misgivings, Bitcoin managed to preserve its higher levels into Friday, these previously forming a key line in the sand for bullish sentiment to return.

Never mind the inflows?

Whales, meanwhile, are not new potential sellers. As Cointelegraph reported earlier in the month, larger investors have diverged from smaller retail hodlers in terms of buying behavior.

CryptoQuant and others confirm that this is still the case, with exchange withdrawals conversely reflecting “peak accumulation” similar to September before the breakout to $69,000 all-time highs.

Related: Missed out on hot crypto stocks in 2021? It paid just to buy Bitcoin and Ethereum, data shows

Miners, too, are holding onto their newly released coins from block subsidies, with their reserves now at six-month highs.

“Miners own more BTC than when BTC was at $69k, in fact, they added back all the BTC they net distributed since the drop from $69k,” contributor Venturefounder noted.

Bitcoin miner reserve vs. BTC/USD annotated chart. Source: CryptoQuant

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