Bitcoin Inflows into Exchange Increase as Bitcoin Became Highly Volatile
Over the past 24 hours, Bitcoin incurred a high volatility such that it led to the sub-$9k area. The leading cryptocurrency incurred notable bullish pressure at this level, thereby returning to its past consolidation range in the mid-$9k area.
Interestingly, a huge inflow of BTC into exchanges happened at the same time. This suggests that investors consider this latest dip basically remarkable, and these new inflows could put more pressure on the market.
According to an analyst, Bitcoin supply could far outweigh demand but Bitcoin’s performance around the major support in the lower-$9k area will determine the validity of this sentiment.
When the benchmark cryptocurrency sharply declined overnight to the sub-$9k area, the bulls came on to absorb the heavy bearish pressure, halting any additional downside. It then hovered around the lower-$9k area for some hours before the bulls came up, sending the cryptocurrency towards its past consolidation area near $9.4k.
The move did not alter Bitcoin’s market structure but further highlighted the weakness which emanated from consecutive rejections close to $10k recorded in recent times. It seems investors are observing this clear weakness, as observed while looking towards Bitcoin’s exchange inflows.
“BTC crashed as the US stock has tumbled from 15 June, 02:00 UTC. Whales from Coinbase and Gemini moved before the dip…”
An analyst known as TraderX0X0 on Twitter spoke about the increase in exchange inflows, noting that it could be a sign that Bitcoin is currently plagued by basic weakness: “Price keeps breaking down then the question has to be asked, will miners really hold onto their inventory?”
This new trend might suggest a shift in the underlying strength of Bitcoin, showing that more downside is forthcoming.