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Bitcoin is currently hovering above a major support level, and any minor selling caused by a group of traders is likely to be… Snowballing into a wave of intense selling pressure. this The fragile situation was emphasized According to data from on-chain analytics firm Santiment, which revealed that more than 30,000 BTC, worth approximately $1.83 billion, were transferred to cryptocurrency exchanges within a short period. There is no doubt that the entry of such a huge amount of Bitcoins onto cryptocurrency exchanges poses a problem, especially in terms of… Bullish outlook for cryptocurrency.
30,000 Bitcoin sold in 72 hours
According to Santiment data highlighted by cryptocurrency analyst Ali Martinez, Bitcoin addresses holding between 1,000 BTC and 10,000 BTC sold or redistributed about 30,000 BTC in the past 72 hours. Considering the current average price of Bitcoin, this amounts to about $1.83 billion worth of Bitcoin trades.
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#Bitcoin The whales sold or redistributed about 30 thousand $ Bitcoin In the last 72 hours, a total of $1.83 billion! pic.twitter.com/y9FsARYrmM
– Ali (@ali_charts) October 10, 2024
exchange Data flow from IntoTheBlockwhich tracks the activities of various coin holder groups, reveals that on October 8 alone, about 18,220 Bitcoins were transferred to exchanges. This was followed by an additional 16,000 BTC on October 9 and around 13,800 BTC on October 10.
While not all inflows lead to immediate sales, large amounts of Bitcoin entering exchanges often indicate that investors are positioning themselves for potential sales. This steady flow of exchanges could indicate a build-up of selling pressure, with market participants possibly preparing to liquidate their holdings in the near future.
Bitcoin under increasing selling pressure?
On a positive note, Current sales They are largely paid by short-term holders, which has led to a shift in Bitcoin ownership. Many of the Bitcoins being sold are bought by long-term holders, who view the decline as an opportunity to strengthen their positions. This shift in ownership can stabilize the market, as long-term holders are usually less likely to sell in the future.
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Furthermore, exchange flow data shows a gradual decline in the amount of Bitcoin being sent to exchanges each day. This trend indicates that fewer investors are moving their bitcoins into exchange wallets, which could be a sign that the recent wave of selling is losing momentum.
In terms of exchange reserve Data from CryptoQuant It shows a steady decline in the amount of Bitcoin held in wallets controlled by cryptocurrency exchanges since the beginning of October. This decline in exchange reserves contradicts fears of a continuing sell-off, because it means there is less Bitcoin available for sale on exchanges. If this trend continues, it could further reduce selling pressure and provide a more optimistic outlook for Bitcoin’s near-term recovery.
At the time of writing, Bitcoin is trading at $60,854, placing a lower price floor of around $60,000.
Featured image created with Dall.E, chart from Tradingview.com