A rare "unusual movement" by a whale! 1,000 Bitcoins suddenly transferred out of the exchange. On-chain analysts: The transaction price is about 55,000

FX168 Financial News Agency (Asia Pacific) According to monitoring by Chinese chain analyst Yu Jin, on Monday (September 9), a giant whale address created three days ago withdrew 1,000 bitcoins from Binance, the world's largest cryptocurrency exchange, equivalent to US$55.02 million. The transaction price was US$55,028.

Currently, the short-term outlook for Bitcoin remains bleak, with many analysts saying there could be more pain ahead. The correlation between Bitcoin and altcoins remains strong, and the pressure on Bitcoin could intensify as investors turn their attention to other altcoins under Web3 technology in search of better returns.

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Veteran trader Peter Brandt has sounded the alarm, predicting that Bitcoin could drop to $46,000 in the near future as a macro megaphone pattern forms on the chart.

Brandt's analysis suggests that Bitcoin's downtrend is driven by strong selling pressure that outweighs any potential buying momentum.

This bearish stance will only be invalidated if Bitcoin closes above $65,000 on a sustained basis and rebounds to $70,000.

However, Brandt warned that for now, the risk of further declines remains high.

Amid this pessimistic outlook, on-chain data suggests that whale investors are rapidly increasing their selling, The Currency Analytics said. This is the main factor driving Bitcoin prices down. The Bitcoin Fear and Greed Index, which measures market sentiment, has fallen to 22%, indicating "extreme fear."

This sharp drop highlights that investors are worried about a potential market capitulation.

Data from on-chain Lookonchai shows that a whale investor deposited 4,544 bitcoins worth about $265 million into Binance over the past week. Today alone, the whale deposited 380 bitcoins, worth more than $21 million, further exacerbating market panic.

These large-scale sell-offs by whale investors usually portend trouble for retail traders, as they can set off a chain reaction in the market, causing prices to fall further.

In addition to whale sell-offs, U.S. Bitcoin spot ETFs have also been bleeding cash. Over the past week, Bitcoin spot ETFs have seen net cash outflows for seven consecutive days, with outflows totaling about $211 million on Thursday. Fidelity's Bitcoin Spot ETF (FBTC) contributed the majority of these losses, accounting for $149 million of the total outflows.

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The continued outflows of funds from U.S. Bitcoin spot ETFs have exacerbated the bearish sentiment in the market. These ETFs are an important way for institutional investors to invest in Bitcoin, and the net outflows show that even these large investors are cautious about the short-term prospects of Bitcoin. The massive outflows from Bitcoin ETFs are another indicator that prices may fall further.

Although the current market sentiment remains extremely negative, some analysts believe that the fourth quarter of 2024 could trigger a larger bull run that could extend into early 2025. The Federal Reserve is about to announce its interest rate decision on September 18, which is seen as a key moment for the crypto market. If the Fed cuts rates as many expect, this could give risk assets like Bitcoin a much-needed boost, setting the stage for a new rally.

However, for now, the market remains highly volatile, and the supply of Bitcoin on centralized exchanges (CEX) has been steadily declining over the past five months. This suggests that long-term investors, including major institutions such as BlackRock, are holding Bitcoin despite the recent price drop. These long-term holders are unlikely to sell due to short-term volatility, which could help stabilize the market once the selling pressure from whales subsides.

In the short term, Bitcoin prices appear set to fall further, with predictions of a drop below $50,000 imminent. Whale selling and continued outflows from US Bitcoin spot ETFs are creating a storm of negative sentiment, as evidenced by the sharp drop in the Fear & Greed Index.

While there is hope for a bigger bull run ahead, the current environment remains fraught with uncertainty. Investors should proceed with caution and keep a close eye on key events such as the upcoming interest rate decision by the Federal Reserve. Until Bitcoin is able to break out of the current bear cycle and regain momentum above $65,000, the risk of further declines remains high.