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Bitcoin is currently hovering above a key support level, and any small sell-off caused by a group of traders could potentially mean that snowball into a wave of intense selling pressure. This vulnerable situation is underlined data from on-chain analytics firm Santiment showed that more than 30,000 BTC, worth approximately $1.83 billion, was transferred to crypto exchanges within a short period of time. Undoubtedly, such a huge amount of BTC entering crypto exchanges is problematic, especially in terms of a bullish outlook for the cryptocurrency.
30,000 BTC sold in 72 hours
According to Santiment data highlighted by crypto analyst Ali Martinez, Bitcoin addresses holding between 1,000 BTC and 10,000 BTC have sold or redistributed approximately 30,000 BTC in the last 72 hours. Considering Bitcoin’s current average price, this equates to approximately $1.83 billion in BTC exchanges.
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#Bitcoin About 30,000 whales have been sold or redistributed $BTC in the last 72 hours, a total of $1.83 billion! pic.twitter.com/y9FsARYrmM
— Ali (@ali_charts) October 10, 2024
Stock exchange intake data from IntoTheBlockwhich tracks the activities of different cohorts of holders, reveals that approximately 18,220 BTC was moved to exchanges on October 8 alone. This was followed by another 16,000 BTC on October 9 and approximately 13,800 BTC on October 10.
While not all inflows lead to immediate sell-offs, large amounts of BTC hitting exchanges often suggest investors are positioning themselves for potential sell-offs. These continued currency inflows could indicate increasing selling pressure, with market participants possibly preparing to liquidate their holdings in the near future.
Bitcoin under increased selling pressure?
On a positive note, the current sale are largely driven by short-term holders, which has led to a shift in Bitcoin ownership. Much of the BTC being sold is being snapped up by long-term holders, who see the dip as an opportunity to strengthen their positions. This shift in ownership could stabilize the market, as long-term owners are generally less likely to sell in the future.
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Furthermore, exchange inflow data shows a gradual decline in the amount of BTC sent to exchanges each day. This trend indicates that fewer investors are moving their Bitcoin into currency portfolios, which could be a sign that the recent wave of sell-offs is losing steam.
As regards the foreign exchange reserve, data from CryptoQuant shows a steady decline in the amount of BTC held in wallets managed by crypto exchanges since early October. This decline in foreign exchange reserves contradicts fears of continued sell-off, as it implies 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, which represents a price floor of around $60,000.
Featured image created with Dall.E, chart from Tradingview.com
