$1.83B Moves to Exchanges: Is a Bitcoin Bloodbath Looming?

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Bitcoin is currently positioned above a critical support level, and even a slight selloff initiated by a cluster of traders could potentially lead to a cascade of significant selling pressure. This delicate situation is highlighted by data from the on-chain analytics company Santiment, which indicated that over 30,000 BTC, equivalent to roughly $1.83 billion, has been transferred to cryptocurrency exchanges in a short timeframe. There’s no doubt that such a substantial influx of BTC onto crypto exchanges poses challenges, particularly regarding a bullish forecast for the cryptocurrency.

30,000 BTC Sold In 72 Hours

As per Santiment data disclosed by crypto analyst Ali Martinez, Bitcoin addresses holding between 1,000 BTC and 10,000 BTC have sold or redistributed about 30,000 BTC within the last 72 hours. Given the current average Bitcoin price, this translates to around $1.83 billion worth of BTC changing hands.

#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

Exchange inflow data from IntoTheBlock, which monitors the activities of various holder groups, reveals that on October 8 alone, nearly 18,220 BTC was transferred to exchanges. This was succeeded by an additional 16,000 BTC on October 9 and approximately 13,800 BTC on October 10.

Although not all inflows result in immediate selloffs, substantial volumes of BTC entering exchanges often signal that investors are bracing themselves for potential sales. This persistent trend of inflow could indicate a buildup of selling pressure, with market participants possibly getting ready to liquidate their holdings soon.

Is Bitcoin Facing Increased Selling Pressure?

On a brighter note, the current selloffs are predominantly driven by short-term holders, resulting in a shift in Bitcoin ownership. A considerable portion of the BTC being sold is being acquired by long-term holders, who perceive the downturn as an opportunity to enhance their positions. This transition in ownership might stabilize the market, as long-term holders typically demonstrate less propensity to sell in the future.

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Furthermore, exchange inflow data illustrates a gradual decrease in the quantity of BTC being sent to exchanges daily. This pattern suggests that fewer investors are depositing their Bitcoin into exchange wallets, which could imply that the recent wave of selloffs is losing steam.

Regarding exchange reserves, data from CryptoQuant indicates a consistent decline in BTC held in wallets controlled by crypto exchanges since early October. This reduction in exchange reserves counters concerns about further selloffs, as it suggests a lesser availability of Bitcoin for sale on exchanges. Should this trend persist, it could further mitigate selling pressure and offer a more positive outlook for Bitcoin’s short-term recovery.

As of the time of this writing, Bitcoin is trading at $60,854, establishing a price floor of around $60,000.