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Bitcoin is currently moving above a key support level, and any short selling caused by a group of sellers is possible it snowballed into a wave of intense sales pressure. This the fragile state is emphasized with data from on-chain analytics firm Santiment, which revealed that more than 30,000 BTC, with an estimated value of $1.83 billion, was transferred to crypto exchanges within a short period of time. Undoubtedly, such a large amount of BTC entering crypto exchanges is a problem, especially in terms of terms bullish outlook for 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 around 30,000 BTC in the last 72 hours. Considering the current average value of Bitcoin, this comes out to about $1.83 billion of BTC exchanging hands.
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#Bitcoin approximately 30,000 whales were sold or redistributed $BTC in the last 72 hours, a total of 1.83 billion dollars! pic.twitter.com/y9FsARYrmM
– Ali (@ali_charts) October 10, 2024
Exchange login data from IntoTheBlockwhich tracks the activities of various owner groups, reveals that on October 8 alone, approximately 18,220 BTC were moved to the exchange. This was followed by an additional 16,000 BTC on October 9 and approximately 13,800 BTC on October 10.
While not all investments lead to immediate sales, high BTC volumes entering the exchange usually suggest that investors are positioning themselves for a potential sale. These ongoing exchange inflows may indicate an accumulation of selling pressure, where market participants may prepare to liquidate their holdings in the near future.
Bitcoin Under More Selling Pressure?
On a positive note, current selloffs they are mostly driven by short-term holders, which has led to a shift in Bitcoin ownership. Most of the BTC traded is taken by long-term holders, who view the dip as an opportunity to strengthen their positions. This change in ownership may stabilize the market, as long-term owners are generally less likely to sell going forward.
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In addition, exchange entry data shows a gradual decrease in the amount of BTC sent to the market on a daily basis. This trend shows that fewer investors are moving their Bitcoin to exchange wallets, which could be a sign that the recent wave of selloffs is losing steam.
Regarding the 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 drop in exchange reserves contradicts fears of a further sell-off, as it means less Bitcoin is available for sale on exchanges. If this trend continues, it could further reduce selling pressure and provide an optimistic view of Bitcoin’s imminent recovery.
At the time of writing, Bitcoin is trading at $60,854, establishing a price zone of around $60,000.
The featured image was created with Dall.E, a chart from Tradingview.com