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$83K Bitcoin price in the cards after data shows BTC whales bought the dip

Published 05/18/2021, 04:05 PM
Updated 05/18/2021, 05:40 PM
$83K Bitcoin price in the cards after data shows BTC whales bought the dip
BTC/USD
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As Bitcoin (BTC) tested the $43,000 support for the third consecutive day, whales bought the dip on derivatives exchanges. While there has been no significant price change, the Bitcoin futures premium reached its lowest level in six months. This indicator matches Dec. 11, 2020, when Bitcoin hit a $17,600 low just 10 days after making an all-time high at $19,915.

Bitcoin/USD price on Coinbase, December 2020. Source: TradingView

In December 2020, derivatives action triggered a 95% rally in 23 days, taking Bitcoin to a new high at $42,000. In addition to the futures premium bottoming, rumors of potentially harmful United States regulation played a central-stage role in the market downturn in both instances.

OKEx Bitcoin 3-month futures annualized premium, December 2020. Source: Skew
OKEx Bitcoin 3-month futures annualized premium, May 2021. Source: Skew
Top traders Bitcoin long-to-short ratio at OKEx. Source: Bybt

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