Bitcoin Exchange Inflow Hit Highest Point in Months, Will Price Dip Continue?
Bitcoin (BTC) price declined further after a prolonged correction wiped out previous gains. The crypto market remains in the red zone, with intense sell pressure and negative sentiments impacting asset prices. Over the past week, traders saw an 8% total decline in market capitalization and a downward trend in on-chain metrics.
BTC Exchange Inflow Sends Bear Signals
New CryptoQuant data shows bearish Bitcoin metrics on the Binance exchange. First, the exchange inflow of the top 10 transactions has plummeted to a level not seen in almost one year. This metric helps traders gauge the large amounts of asset flows to the centralized exchange.
Binance remains the largest exchange in terms of trading volume, making it a top destination for whales. Over the years, asset movements to centralized crypto exchanges have ramped up sales due to the ease of sale, while flows out of exchanges show a strong bullish stance.
Increasing Bitcoin Reserves and Bearish Sentiment. Binances Bitcoin reserve has risen to levels last observed in November of the previous year, potentially indicating more selling pressure. This observation is further supported by the Taker Buy/Sell Ratio, which reveals that bearish sentiment currently dominates the exchange.
Furthermore, the seven-day moving average for the top crypto has increased as panic grips trades. Last week, Bitcoin price slipped below $80K, fueling massive retail exit to save as holders look to take products.
Meanwhile, institutional investors also sold assets after the price slipped below the support level. At press time, BTC trades at $85,843, a 3.5% drop in the last 24 hours, extending weeks losses above 16%. Despite this sharp fall in Bitcoin prices, mega bulls like CryptoQuants CEO have backed a rebound for the asset.
Altcoins Face Similar Pressure
The fall in Bitcoin price sent negative signals to the wider market lowering signs of an altcoin season. Ethereum fell 6% to trade at $2,177 while weekly outflows exceeded 22%. The altcoin woes have surged in recent weeks after falling below $2,500 amid whale pressures.
XRP lost a chunk of gains picked up in December after its price fell to $2.11 before picking up again. The institutional favorite tipped to ignite the altcoin season has faced headwinds sparked by declined volumes. XRP bulls maintain optimism for an upswing when macro factors flip green and appetite soars. Cardanos weekly exits hit 25% affecting traders positions.
Read more: https://zycrypto.com/bitcoin-exchange-inflow-hit-highest-point-in-months-will-price-dip-continue/
Text source: ZyCrypto
