Bitcoin is currently teetering above a crucial support level, with the potential for a minor sell-off by a group of traders to escalate into a significant wave of selling pressure. This delicate situation is highlighted by data from on-chain analytics firm Santiment, revealing that more than 30,000 BTC, valued at about $1.83 billion, has been transferred to crypto exchanges in a short period. The influx of such a substantial amount of BTC into exchanges poses challenges, particularly in terms of a positive outlook for the cryptocurrency.
30,000 BTC Transferred within 72 Hours
Recent data from Santiment, as shared by crypto analyst Ali Martinez, indicates that Bitcoin addresses holding between 1,000 BTC and 10,000 BTC have moved or distributed around 30,000 BTC over the past 72 hours. Considering the current average price of Bitcoin, this translates to approximately $1.83 billion worth of BTC changing hands.
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#Bitcoin whales have sold or redistributed around 30,000 $BTC in the past 72 hours, totaling $1.83 billion! pic.twitter.com/y9FsARYrmM
— Ali (@ali_charts) October 10, 2024
Data on exchange inflows from IntoTheBlock, monitoring activities of various holder cohorts, indicates that on October 8 alone, approximately 18,220 BTC was transferred to exchanges. This was followed by an additional 16,000 BTC on October 9 and roughly 13,800 BTC on October 10.
While not all inflows result in immediate sell-offs, significant volumes of BTC entering exchanges often suggest that investors are positioning themselves for potential sales. This ongoing exchange inflow could signal an accumulation of selling pressure, with market participants potentially gearing up to offload their holdings in the near future.
Bitcoin Facing Intensified Selling Pressure?
Encouragingly, the current sell-offs appear to be primarily driven by short-term holders, leading to a shift in Bitcoin ownership. Long-term holders are seizing the opportunity to acquire the BTC being sold, viewing the dip as a chance to reinforce their positions. This shift might stabilize the market, as long-term holders tend to hold onto their assets for longer durations.
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Furthermore, data on exchange inflows reveals a gradual decline in the daily amounts of BTC moved to exchanges. This declining trend suggests that fewer investors are transferring their Bitcoin to exchange wallets, potentially indicating a slowdown in the recent sell-offs.
Regarding exchange reserves, CryptoQuant data shows a consistent decrease in the BTC held on exchanges’ wallets since the start of October. This reduction contradicts concerns about ongoing sell-offs, signaling a decrease in available Bitcoin for sale on exchanges. If this trend persists, it could alleviate selling pressure and offer a more positive outlook for Bitcoin’s near-term recovery.
At present, Bitcoin is trading at $60,854, establishing a support level around $60,000.
Featured image created with Dall.E, chart source: Tradingview.com
