Bitcoin has started the month of May dramatically and is still trading below $58,000 at the time of writing. Bitcoin’s price break came at the same time as the decision by some wealthy investors to send huge amounts of BTC to the exchanges.

Whale sends $140 million worth of bitcoin to Kraken

On Wednesday, Lookonchain managed to spot a whale sending 1,225 bitcoin (about $70.26 million) to Kraken. The same whale was also spotted a few days earlier. At the time, the rich man in question also sent 1,225 bitcoin to the American Kraken.

According to Loononchain, the whale managed to collect a total of 24,755 bitcoin between March 1 and March 15. It is striking that he bought his bitcoin in the run-up to the all-time high and has already decided to sell part of it.

According to popular analyst Benjamin Cowen, these declines could signal the start of a months-long bear market, as we saw in 2019.

At the time, a breakout in gold also led to a local top in bitcoin. It is striking that we now see a similar pattern on the market.

Short term break from the bull market

Other analysts believe we are in for a brief lull in the bull market. Glassnode founders Jan Happel and Yann Allemann, who share analysis on the Twitter account Negentropic, expect bitcoin to rise again soon.

According to analysts, bitcoin is ready to find a bottom after the US central bank organized its interest rate meeting yesterday.

Of course, that remains to be seen. Ultimately, Bitcoin is more than on-chain and technical analysis. Macroeconomic conditions also play a role and are currently highly uncertain.

For now, it is important that inflation drops, without the need for a recession or other misery. That seems to be a difficult task, so we will probably remain uncertain in this area for a while.


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