Bitcoin Lost $7K Support Right After 1000 BTC Huobi Deposit — Data

Analysis from Coin Metrics suggests that a giant selloff sparked an immediate knock-on effect for BTC/USD, which shed hit lows of $6,850.

Bitcoin (BTC) fell below $7,000 minutes after an investor prepared to sell 1,000 BTC on a major exchange, data shows.

Discovered by monitoring resource Coin Metrics, the deposit on Huobi Global on April 10 preceded BTC/USD falling by around $250.

BTC/USD chart showing Huobi funds move. Source: Coin Metrics/ Twitter

Previously, the pair had traded in a corridor between $7,100 and $7,400. While its abrupt exit did not surprise many analysts and traders, who had expected higher levels would fail to find support for long, a rebound has yet to appear.

At press time, Bitcoin hovered at $6,880, having failed to reach the $7,000 zone since Friday.

Contemplating the data, analytics outfit Arcane Research queried whether the Huobi order could be linked to the notorious PlusToken ponzi scheme. 

As Cointelegraph reported, a series of sell-offs from PlusToken, which accrued huge amounts of money during its operations, likely created artificial price pressure on Bitcoin markets.

Easy plays for whales

Meanwhile, it is not just bad actors who can bewitch spot prices with large trades. Late last year, one lone whale used a giant stash of cash to “defend” the BTC/USD at a certain price point — seemingly just to win a bet with another whale.

This week, data from Glassnode revealed that the number of whale entities — those holding at least 1,000 BTC — had reached a two-year high. 

The number of wallets containing at least 1 BTC is also higher than ever, indicating an overall tendency to accumulate at current prices.