Bitcoin Bearish Signal: Whales With 1k-10k BTC Depositing To Exchanges
August 12 2022 - 3:00PM
NEWSBTC
On-chain data shows Bitcoin exchange inflows from whales holding
between 1k to 10k BTC have spiked up recently, a sign that can be
bearish for the price of the crypto. Bitcoin Exchange Inflows Spike
Up Following Rally Above $24k As pointed out by a CryptoQuant post,
the BTC whales with between 1k to 10k BTC seem to have sent a large
stack to exchanges recently. The “exchange inflow” is an indicator
that measures the total amount of Bitcoin being transferred to
wallets of all centralized exchanges (both spot and derivatives).
When the value of this metric spikes up, it means a large number of
coins are being deposited to exchanges right now. Depending on how
many of these are being moved to spot exchanges, such a trend can
be bearish for the price of BTC as investors usually send to these
exchanges for selling purposes. Related Reading: Bitcoin aSOPR
Fails Retest Of Historical Bull-Bear Junction On the other hand,
low values of the indicator suggest there is little selling going
on in the market at the moment. Therefore, this kind of trend can
be neutral or bullish for the value of the coin. Now, here is a
chart that shows the trend in the Bitcoin all exchanges inflows
over the last few days: The value of the metric seems to have
spiked up recently | Source: CryptoQuant As you can see in the
above graph, the Bitcoin all exchanges inflows have registered
large values during the last couple of days. The latest spike has
come shortly after the BTC price surged above $24k. The chart
actually shows a modified version of the indicator, called the
“exchange inflow – spent output value bands,” which tells us what
contribution to the total inflows is coming from each of the
different sized holders in the market. Related Reading: Is The
Bitcoin Surge Due To An External Reason? What The Data Suggests It
looks like the investors holding 1k to 10k BTC had an especially
large movement to exchanges in the last two days. Holders belonging
to this group are the whales, so the current trend can suggest
whales may be planning to dump right now. However, as mentioned
earlier, the indicator takes into account inflows for both spot and
derivatives exchanges. A large part of the latest inflows went to
the derivatives exchanges, which implies whales may have been
hedging against their spot positions. Nonetheless, a sizeable part
of the total inflows did go to spot exchanges, so some selling may
still be going on in the market from these whales. BTC Price At the
time of writing, Bitcoin’s price floats around $23.8k, up 2% in the
past week. Looks like the value of the crypto has come down during
the past day | Source: BTCUSD on TradingView Featured image from
Thomas Bonometti on Unsplash.com, charts from TradingView.com,
CryptoQuant.com
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