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Bitcoin (BTC) has witnessed price fluctuations as the market battles volatility and selling pressure. A recent move by the Coinbase exchange might have been responsible for the recent price outlook of the flagship cryptocurrency asset. Institutional Bitcoin researcher at CryptoQuant, Axel Adler Jr., noted that the exchange recently triggered an artificial spike in on-chain metrics.
How distorted on-chain metrics created sell pressure
Notably, Coinbase moved about 800,000 BTC inside its own system. This transfer, worth around $68 billion, was interpreted by market participants as a sell move. It made the market react as investors speculated that long-term holders (LTH) were selling their BTC as a result of price volatility.
The development further worsened the price outlook for Bitcoin as some traders panicked and decided to offload their holdings as well.
In reality, however, no Bitcoin was sold by Coinbase. The exchange merely engaged in the rebalancing of its assets within its wallets. Nevertheless, the internal transfer created an impression that LTHs were pulling off the biggest sell-off ever on the Bitcoin market.
The interpretation triggered sell pressure as the distorted on-chain metrics made a go for profit.
This might be the reason behind Bitcoin’s recent price slip on the broader market below $90,000. In the last 24 hours, however, Bitcoin has climbed from a low of $86,565.02 to hit an intraday peak of $91,897.58 in a renewed recovery move.
As press time, Bitcoin exchanged hands at $90,485.81, which represents a 4.33% increase. The trading volume jumped by 21.9% to $72.73 billion within the same time frame.
It appears investors’ confidence has been rekindled, and if the momentum is sustained, it could trigger a rally.
Can Bitcoin flip $100,000 by November's end?
Bitcoin’s resurgence to the $90,000 level has seen short-position traders suffer massive liquidations.
A significant $8.03 million were wiped out as the coin reclaimed this critical level. The upward movement has sparked hopes of a possible rally to reclaim the psychological $100,000 target.
Some are tagging the rally as a possible "Thanksgiving pump" as the buyers' pattern signals renewed interest in the coin. If the upward surge continues, Bitcoin might flip into the six-digit price range before November ends.
Now, market observers are keen to watch how investors engage the asset and the impact it might have on the price outlook.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team