Bitcoin (BTC) slid under $33,000 for the first time in over a week on Jan. 21 as selling pressure gathered to drive price action lower.

Coinbase Premium abruptly drops

Data from Cointelegraph Markets and TradingView showed BTC/USD continuing its downtrend on Thursday, dropping 7.% on the day and failing to bounce off $33,000 support.

Chart

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

The latest move, which brings Bitcoin down over 13% versus its highs from Tuesday, came amid increased selling at Coinbase Pro, the professional trading arm of United States cryptocurrency exchange Coinbase.

As Cointelegraph reported, major spikes in volume at Coinbase Pro had accompanied price volatility in recent weeks. This time, it was a dip in the so-called "Coinbase Premium" which signalled selling was underway — the difference in price between the BTC/USD pair at the venue and others suddenly decreased.

Chart

Coinbase Premium vs. BTC/USD chart. Source: Ki Young Ju

"It seems $BTC sellers came from #Coinbase. Coinbase Premium Index has been a negative value since an hour ago," Ki Young Ju, CEO of on-chain analytics resource CryptoQuant, summarized on Twitter uploading the accompanying chart.

Coinbase whales might want $BTC to go lower for consolidation."

A day earlier, Ki had highlighted a corresponding increase in deposits across exchanges from whales, indicating a potential desire to trade or sell BTC at prices at or below the mid-range of its trading corridor between $30,000 and $40,000.

Battle of the Bitcoin whales

Another trend since Bitcoin began ascending to new all-time highs was a transfer of wealth from small investors to whales, the latter buying up the supply during every price retracement.

Despite the sell-off, it was buyers hitting the headlines this week, chief among the investment giant Grayscale, which fixed its biggest-ever one-day BTC purchase worth more than $600 million. In the 24 hours to the end of Wednesday, the company increased its balance by a further 8,000 BTC — far more than the supply being added to the market by miners.

At a virtual conference this week, CEO Michael Sonnenshein outlined nation state adoption of digital assets and increased interest from financial advisers as two of the major trends which believes will characterize 2021.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum price action gets boring as wETH insolvency concerns spike

Ethereum price action gets boring as wETH insolvency concerns spike

Ethereum price shows a lack of volatility as it hovers above a crucial support level. A move to the upside is unlikely until it overcomes another significant hurdle. Therefore, ETH continues to consolidate, awaiting a signal from BTC.

More Ethereum news

Three altcoins to watch this week: Dogecoin, Crypto.com and Litecoin

Three altcoins to watch this week: Dogecoin, Crypto.com and Litecoin

Despite Bitcoin's bearish price action throughout November, several altcoins have served profitable opportunities for traders to engage in.  Within the Crypto market, DOGE, LTC and CRO all show potential for more uptrend rallies.

More Dogecoin news

Why Cardano price floating around $0.30 is not a good look

Why Cardano price floating around $0.30 is not a good look

Cardano price is in a conflicting situation. While hopes for a Santa rally linger amongst crypto enthusiasts, ADA's monthly performance points to further negative returns. Cardano price has the community watching closely.

More Cardano news

Why Algorand price could continue to pack on negative returns in December

Why Algorand price could continue to pack on negative returns in December

Algorand price continues to pack on negative returns for November. As the final days of the month approach, knife-catching bulls are skimming through all digital assets looking for a last-minute opportunity.

More Algorand news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP