Bitcoin (BTC) Price Teeters Above Critical Support Level as 30,000 BTC Floods Exchanges

Bitcoin is currently teetering above a critical support level, with any minor selloff sparked by a faction of traders potentially snowballing into a substantial wave of intense selling pressure.

output: Bitcoin is currently hovering above a critical support level, with any minor selloff sparked by a faction of traders potentially snowballing into a substantial wave of intense selling pressure.

The precarious state of the market is highlighted by data from on-chain analytics firm Santiment, which reveals that over 30,000 BTC, valued at approximately $1.83 billion, has been transferred to crypto exchanges within a short timeframe. Such a massive influx of BTC into exchanges is particularly concerning for bullish investors.

Santiment data underscored by crypto analyst Ali Martinez shows that Bitcoin addresses holding between 1,000 BTC and 10,000 BTC have offloaded or redistributed around 30,000 BTC in the past 72 hours. Given the current average price of Bitcoin, this equates to around $1.83 billion worth of BTC changing hands. Exchange inflow data from IntoTheBlock, which monitors the activities of various holder cohorts, indicates that on October 8 alone, approximately 18,220 BTC was transferred to exchanges. This was followed by an additional 16,000 BTC on October 9 and about 13,800 BTC on October 10.

While not all these inflows result in immediate selloffs, significant volumes of BTC entering exchanges often signal that investors are positioning themselves for potential sales. The sustained exchange inflow may indicate mounting selling pressure, with market players potentially readying to liquidate their holdings soon.

On a brighter note, the current selloffs are predominantly driven by short-term holders, leading to a notable shift in Bitcoin ownership. Many of the BTC being sold are being acquired by long-term holders, who view this dip as a chance to bolster their positions. This shift in ownership could bring stability to the market, as long-term holders are generally less likely to sell in the near future.

Exchange inflow data further reveals a gradual decline in the amount of BTC sent to exchanges daily, suggesting that fewer investors are moving their Bitcoin into exchange wallets. This trend may indicate that the recent wave of selloffs is losing momentum.

Additionally, data from CryptoQuant shows a steady decline in the amount of BTC held in wallets controlled by crypto exchanges since early October. This reduction contradicts the fears of ongoing selloffs, implying there is less Bitcoin available for sale on exchanges. If this trend continues, it could further ease the selling pressure and create a more optimistic outlook for Bitcoin’s near-term recovery.

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

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