The price of Bitcoin has been put through the wringer regarding its uptrend amid a sea of liquidations over the past 24 hours. More than a few are reminded of a possible peak like the one in early 2018, but is the fear justified?
If one takes into account that an enormous number of traders have sent their Bitcoin (BTC) to exchanges, the price of Bitcoin has held up relatively well. In total, as many BTC have been sent to exchanges as were last sent during the March 2020 crash. Indeed, data from on-chain monitoring resources CryptoQuant and Glassnode show that BTC exchange inflows reached a one-year high on May 13th.
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Nearly 30,000 BTC on exchanges
The price of Bitcoin came under a lot of pressure this week as several bearish news from different directions hit the leading cryptocurrency at the same time.
The suspension of BTC payments by Tesla, followed by rumors of an investigation into the Binance exchange by US regulators was already enough to send the Bitcoin price to fresh lows of $46,000 in the short term.
Inflows to exchanges reached 30,000 BTC equivalent to about $1.47 billion on Thursday, while liquidations amounted to $200 million within 10 minutes at the height of price volatility.
BTC inflows on exchanges
However, the worst was averted as crucial support levels of the medium-term uptrend were successfully defended. These include the 20-week MA and the support zone between $45,000 and $47,000. Since the price collapse, the bitcoin price has been consolidating between $48,000 and $51,000.
However, Ki Young Ju, CEO of CryptoQuant, drew attention to the fact that whales are still sending more BTC than usual to exchanges as a possible sign that the bearish phase is not over for good. On Twitter, he warned his followers by saying:
If you are a derivative trader, be careful in the short term. (Relatively speaking), whales are paying BTC into the exchanges.
Accordingly, caution is advised not to blindly mistake a possible temporary pullback for a resumption of the previous uptrend. The ability of the bulls to defend the important support zone between $45,000 and $47,000 will certainly be decisive, should it be tested by the bitcoin price another time. In the short term, it would be positive if BTC manages to establish $50,000 as support again.
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