Correction Time: Bitcoin Price Retrace To $28K losses $4K In Quick Succession Despite Large Bitcoin Withdrawals

By: Dickson Arinze

January 04, 2021 3:29 AM

A quick reversal on Monday sees BTC/USD instantly Hit the $27.1k Mark before bouncing off back to $28,2k report shows huge Bitcoin Withdrawals leaving Exchanges with a possible low Liquidity.

Bitcoin lost $30,000 support on Jan. 4 as all-time highs gave way to a rapid retracement totalling thousands of dollars.

Data from Coinnewsafrica Markets, Coinmarketcap, and TradingView showed BTC/USD shedding more than 13% in just one hour.

The pullback gathered pace after choppy trading behavior overnight on Sunday, with altcoins rising ever-larger ever-larger slice of Bitcoin's market cap dominance.

At time of reporting, amid heavy volatility, lows focused on $27,700 amid a bounce to nearer $30,000, exchange activity was picking up, data showed, with inflows rising dramatically on the day after traders removed funds last week.

Exchanges such as Binance and Houbi to name a few experienced High influx of USDT Deposit, With high Bitcoin withdrawals from Exchanges as report shows

The top five exchanges, in terms of bitcoin reserves held, have lost a substantial amount of BTC from customer withdrawals. This includes exchanges such as Huobi, Binance, Kraken, Okex, Bitfinex, and Bitflyer.

During the last 30 days, Coinbase has seen a whopping 84,558 BTC withdrawn, Okex has seen 5,715 BTC withdrawn and Huobi has seen 2,599 BTC leave the exchange.

The largest exchanges, in terms of BTC held on January 3, 2021, includes Coinbase with more than $37 billion worth of BTC, Huobi ($10.8B), Binance ($10.2B), Bitfinex ($8.86B), and Kraken ($6.65B) respectively.

This could be a new way of life for Bitcoin whales have adopted a new strategy, rather than dumping coins on the market, Bitcoin whales may be removing liquidity from exchanges reducing upper barriers.