Biggest Bitcoin exchange inflows since 2018 put potential $20K bottom at risk

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Bit­coin (BTC) could be on the verge of a retail major sell-off as exchange inflows spike to almost three-and-a-half-year highs.

Data from on-chain ana­lyt­ics plat­form Cryp­to­Quant shows users of 21 major exchanges send­ing coins to their wal­lets en masse June 14.

Major exchanges finish up 83,000 BTC in a single day

As BTC/USD fell to lows of $20,800, pan­ic appeared to set in among traders, and despite a rever­sal that at one point topped $23,000, few seemed will­ing to trust that the worst was over.

Since then, spot price action has returned to near $21,000, while 24-hour exchange inflows reached 59,376 BTC.

Accord­ing to Cryp­to­Quant data, this is the largest dai­ly inflow since Novem­ber 30, 2018. On that day, exchanges record­ed 83,481 BTC of net inflows. 

May 9, 2022 end­ed with 29,082 BTC in net inflows for the plat­forms mon­i­tored by CryptoQuant.

Con­cerns may thus now turn to whether even more sell-side pres­sure will emerge in Bit­coin mar­kets over the com­ing days and weeks. Around a month after the 2018 influx, BTC/USD hit its cycle bot­tom of $3,100, 84% below its pri­or all-time high of $20,000.

Bit­coin exchange net­flows chart. Source: CryptoQuant

As Coin­tele­graph report­ed, ana­lysts are of mixed opin­ion when it comes to whether Bit­coin will repeat the trend this cycle. An 84% draw­down would mean a bot­tom of just $11,000.

In a sep­a­rate analy­sis of the price sit­u­a­tion, sta­tis­ti­cian Willy Woo con­clud­ed that macro mar­ket move­ments would dic­tate Bit­coin’s bottom.

“I think it’s sim­pler than this, IMO we’ll find a bot­tom when macro mar­kets sta­bilise,” part of a Twit­ter thread con­tem­plat­ing var­i­ous price sup­port the­o­ries read.

FTX, Binance see particularly heavy selling

Ana­lyz­ing who has been sell­ing so far, mean­while, Cryp­to­Quant CEO, Ki Young Ju, point­ed the fin­ger at deriv­a­tives traders and largest glob­al exchange Binance.

Relat­ed: ‘Too ear­ly’ to say Bit­coin price has reclaimed key bear mar­ket sup­port — Analysis

Ki not­ed that the largest num­ber of coin days destroyed — unmoved coins becom­ing active after a dor­mant peri­od — came from those spe­cif­ic venues.

“This sell­ing pres­sure came from Binance and FTX,” he wrote in a Twit­ter thread June 13.

“$BTC Exchange Inflow CDD(Coins Days Destroyed) indi­cates old whale deposits. Binance’s Inflow CDD reached a year-high before the drop.”

Bit­coin coin days destroyed for Binance, FTX (screen­shot). Source: Ki Young Ju/ Twitter

Ki added that this was in con­trast to oth­er whales, who have been com­par­a­tive­ly qui­et through­out the price upheaval, which began with May’s Ter­ra LUNA implo­sion.

Data from on-chain ana­lyt­ics resource Coin­glass mean­while shows the extent of down­side bias on FTX espe­cial­ly in recent days.

Bit­coin fund­ing rates for Binance, FTX. Source: Coinglass

The views and opin­ions expressed here are sole­ly those of the author and do not nec­es­sar­i­ly reflect the views of Cointelegraph.com. Every invest­ment and trad­ing move involves risk, you should con­duct your own research when mak­ing a decision. 



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