Coinbase wallet rebalancing causes false sell claims, here’s how

Bitcoin (BTC) is witnessing price fluctuations as the market battles volatility and selling pressure. Recent moves by the Coinbase exchange may have influenced the recent price outlook for the flagship cryptocurrency asset. Axel Adler Jr., Institutional Bitcoin Researcher at CryptoQuant. noticed The exchange recently caused an artificial spike in on-chain metrics.

How distorted on-chain metrics created selling pressure

Notably, Coinbase moved approximately 800,000 BTC within its own system. The transfer, worth about $68 billion, was interpreted by market participants as a selling move. As a result of the price movement, investors speculated that long-term holders (LTH) were selling their BTC, and the market reacted.

This development further worsened Bitcoin’s price outlook as some traders panicked and decided to sell their holdings as well.

But in reality, no Bitcoins were sold by Coinbase. The exchange simply rebalanced the assets in the wallet. Nevertheless, this internal transfer created the impression that LTH is making the biggest decline in history in the Bitcoin market.

This interpretation triggered selling pressure as distorted on-chain indicators targeted profits.

This may be the reason behind Bitcoin’s recent price drop below $90,000 across the market. However, over the past 24 hours, Bitcoin has risen from a low of $86,565.02 to reach an intraday high of $91,897.58. new recovery movement.

At the time of writing, Bitcoin replaced The value was $90,485.81, representing an increase of 4.33%. Volume increased 21.9% to $72.73 billion during the same period.

Investor confidence appears to be reignited, and if this momentum holds, it could be the catalyst for a rally.

Will Bitcoin be able to flip $100,000 by the end of November?

As Bitcoin recovered to the $90,000 level, traders began holding short positions. suffer from large-scale liquidation.

A good amount of $8.03 million disappeared as the coin regained this important level. This increase has raised hopes that the stock could regain its psychological goal of $100,000.

Some people point out the possibility of a rally. “Thanksgiving Pump” This is because buyer patterns indicate renewed interest in the coin. If this rally continues, Bitcoin could move into the six-digit price range by the end of November.

Market observers are now focused on how investors engage with the asset and how that impacts the price outlook.