Following a stronger NFP data the global equity market melts down. Cryptomarket is not an expectation today
After having a fulfilling Janauray month, the crypto maket still displays strong moves. However, few on chain metric signals a caution for the the largest cryptocurrency by marketcap, the Bitcoin.
Following, the release of U.S Non Farm Payrol (NFP) data, the Bitcoin price fell 0.60% as of writing. The U.S economy added 517k Jobs in January, highest since July and much above the market expectations.
Another hint is coming from On-chain data analysis, the Bitocin Exchange Whale Ratio for All Exchanges (EMA 7), which shows the whale activity has increased in the last two weeks.
Bitocin whale activity on crypto exchanges reached a year low despite the recent Bitcoin price rally.
What Its Signifies
Bitcoin exchange whale ratio indicates the ratio between the sum of the top 10 Bitcoin transfers to exchanges and the total exchange inflows. With a higher ratio, a large percentage of the exchanges deposits are benign made by the whales currently.
This could mean large investors dumping stocks, this kind of trend is indicative of whales are putting high selling pressure on the market, and it could be bearish for the Bitcoin.
A Supply Zone Near $24K Resist Upside Move
On the 4-hour chart, a negative diverngece with the Relative Strenght Index (RSI), indicates a selling momentum that brewing up near higher level. Further, this can be seen on the above technical chart, with the formation of “Evening Star”, a bearish pattern near the session’s high resulted in the price correction below $23,500.
If the selling persist we could expect the price could travel to the horizontal support zone around $22,457.
On the contrary, a change in the bearish sentiment could mean buyers are adding near the lower level, and aiming for yesterday’s high around $25,250.