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Whales Deposit Over $1.5 Billion Worth Of Crypto To Coinbase — Volatility Incoming?

Last Updated March 26, 2024 3:13 PM
Nikola Lazic
Last Updated March 26, 2024 3:13 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Whales are transferring funds to exchanges, signaling potential volatility.
  • Coinbase receives over $1.55 billion, hinting at market moves.
  • BTC and ETH show signs of corrective patterns, caution advised.

In the 24 hours, the crypto community has observed significant crypto fund transfers by investors with large holdings to centralized exchanges. Whale Alert  highlighted these shifts on Twitter 

Coinbase, especially its institutional arm, emerged as a primary destination for these funds, receiving 22,731 Ethereum tokens worth about $78.4 million. Additionally, it saw inflows of $75.9 million in USDC and $72.7 million in Bitcoin from unidentified wallets.

When investors deposit their crypto to exchanges, it usually indicates signs of the seller’s pressure to come. However, it could also mean they will sell their BTC and ETH holdings to buy something else – a bullish move. Either way, whale transfers are usually a definite sign of incoming volatility. 

Whales On The Move

Whale Alert reported 17 high-value transactions to Coinbase, predominantly in Bitcoin, Ethereum, and USDC, including a notable transfer of 150,000 ETH worth around $541.7 million. Coinbase received over $1.55 billion in the 24 hurs to March 26, with outflows from Coinbase significantly lower, under $400 million.

 

Binance also experienced inflows from large-scale traders, albeit to a lesser extent than Coinbase. This surge in transfers to liquid platforms has led to speculation about potential market impacts, including a possible sell-off, especially as these movements coincide with Bitcoin surpassing the $70,000 mark after a recent dip to $60,000.

BTC Price Analysis 

On March 13, 2024, Bitcoin reached its peak value of $73,800. Starting on February 26, the price movement of Bitcoin is shaped like an ascending triangle, indicating either an ending diagonal or a rising wedge. This pattern suggested the possible end of the upward trend and hinted at an imminent reversal.

 

1h chart
ABC correction could have ended

Following the break from this pattern, a decline happened, as Bitcoin fell below the ascending support line, reaching a daily low of $60,600 on March 20, a decrease of 18%. However, a recovery followed, with BTC reaching $71,000 yesterday and attempting to surpass it today, March 26. 

The rise appears corrective as it reached the 0.786 Fibonacci retracement level on a three-wave move – ABC correction pattern. Should the price break its local resistance and continue to rise, this would be invalidated, but if it makes a hard rejection, a larger descending move would be anticipated. 

The first major support level is should be at around $52,600, although there might be some temporary sideways movement as the market experiences selling pressure.

 

ETH Price Analysis 

On March 11, Ethereum surpassed the $4,000 threshold, briefly touching near $4,100, signaling what could be the zenith of its recent ascent. However, it has since begun to fall, dropping to a low of $3,062 on March 20. Like in the case of Bitcoin, a recovery followed with Ethereum reaching $3,680 at its highest point on March 26. 

1h
ETH price recovered by 20% but the rise could be over.

Ethereum’s price currently interacts with the 0.618 Fibonacci retracement level, a typical reversal point for corrective waves. Among other things, this is one of the signs of a potential larger descending move. However, it looks like confirmation will come in the form of a rejection, potentially driving Ethereum’s price below the $3,000 mark.

While there should be some short-term market volatility, Ethereum‘s long-term projection is bullish, with expectations for sustained growth. However, we should be cautious in the immediate future. This is because the price increase could continue invalidating the possibility of a larger drop to $2,700. 

 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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