Bitcoin’s Rollercoaster: Will February Bring More Drama?

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Ah, Bitcoin! That whimsical entity that has danced with the red candles for a staggering five months in a row. One might wonder if it’s developed a taste for the crimson hue, as it shows no signs of sprouting a long lower wick-an indication that perhaps, just maybe, some brave souls are ready to buy. But wait! The whales are stirring, and their persistent selling pressure looms like a dark cloud over our dear cryptocurrency’s head. A new dump could be on the horizon, should the demand fail to gobble up the supply.

Now, dear short-term traders, keep your eyes peeled for some rather ominous signals this February. The analysis below uncovers the most critical factors-prepare your magnifying glasses!

Whale Inflow Ratio on Binance: A Surge Worth Noting

The Whale Inflow Ratio, a fancy term for the proportion of BTC inflows from the top 10 largest transactions relative to all exchange inflows, is surging like a hot air balloon on a breezy day. A higher ratio? Oh, it suggests that large holders are just itching to sell.

Bitcoin’s little tumble below $70,000 just so happened to coincide with the seven-day average of this ratio reaching its highest level in over two years-quite the coincidence, don’t you think? According to our friends at CryptoQuant, the data speaks volumes.

“This isn’t just a random occurrence,” Darkfost, the wise analyst from CryptoQuant, chimed in. “Several whale transactions with hefty amounts of BTC have made their way to the exchange. Sure, Binance’s deep liquidity plays a role, but the uncertain market environment is prompting investors of all varieties to reassess their exposure and strategy.”

What sparked this sudden inflow frenzy, you ask? Well, it seems a significant chunk is linked to Bitcoin transfers from a wallet that Arkham intriguingly claims belongs to Garrett Jin, a name resonating through the crypto halls like a ghostly specter.

Garrett Jin, that audacious Chinese entrepreneur and former CEO of the now-defunct exchange Bitforex, became quite the figure after he masterfully shorted the market during last October’s crash. Quite the talent!

Data from Arkham reveals that since the dawn of February, his wallet’s balance has plummeted by over 10,000 BTC. And hark! Since August last year, when Bitcoin was frolicking above $110,000, this address has offloaded a whopping 67,000 BTC. Imagine the party he threw!

Lookonchain, our vigilant watchdog of notable on-chain movements, reported that Garrett Jin whisked away 5,000 BTC to Binance, selling them off in February. What a whirlwind!

The burning question remains: will he continue this curious ballet of BTC movements to exchanges? And what of the other whales? Are they joining this unholy dance?

Bitcoin Enters a Phase of High Volatility: Hold On Tight!

Whale activity during an uptrend can be absorbed by the eager hands of new demand, preventing dramatic declines. When coins change hands to those willing to pay a premium, all seems right in the world. However, when large inflows occur amidst a storm of negative sentiment, the risk of a new dump becomes as palpable as a whiff of overripe cabbage.

This risk amplifies as Bitcoin Historical Volatility reaches a peak not seen in a year, leaving us all breathless.

Historical Volatility measures the wild swings in Bitcoin’s price over a set period, signaling potential for dramatic short-term price movements. Buckle up, folks!

While this indicator doesn’t offer a crystal ball to predict the market’s future-be it bullish or bearish-the combination of high volatility and surging whale inflows increases the likelihood of renewed downward pressure.

As per BeInCrypto’s latest insights, the accelerating selling might just push Bitcoin down toward the $55,600 abyss, in perfect harmony with the deeper bear-flag projection. Conversely, Bitcoin must reclaim the $70,800 threshold to regain its footing, lest it tumbles further into the shadows of despair.

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2026-02-17 09:50