Bitcoin’s price out of danger? Analysts warn of further BTC inflows 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.
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.
The Born2Invest business news application will bring you the latest, breaking news from a trusted global network of journalists. Updated throughout the day, Born2Invest is a professionally curated digest of business, finance, and crypto news summaries from the most reputable news organizations around the world.
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.
(Featured image by Roger Brown via Pexels)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 22]
This week we're waking the dead as we go back to the metaverse baby. With Apple soon announcing its long-awaited...
Bullish on Bitcoin? – Blackrock CEO Warns of “Debt Ceiling Drama”
Many bitcoin and cryptocurrency investor advocates view BTC as a hedge against inflation and debt concerns, especially as central banks...
Docline Prepares a New Round of 6 Million for 2024
Docline maintains an agreement with Mapfre, with whom it offers digital health programs to the company's policyholders; with the Ballesol retirement...
Cedacri Prices New €275M Bond to Pay €50M Tax and €150M Extra Dividend
As stated in the Report to Cedacri's 2022 Annual Report, and as recalled in the release in which Moody's assigned...
Bierzo Aire Limpio Starts Crowdfunding to Support the Legal Defense of the Environment
The NGO holds an assembly that includes a state-wide meeting against waste incineration, debates on wind and solar macro-projects, and...
Featured2 weeks ago
Ripple Launches Institutional CBDC Platform for Millions of Users
Featured4 days ago
How the Fintech Sector Helps with Financial Inclusion
Featured2 weeks ago
Two Spanish Startups Selected by the Amazon Sustainability Accelerator
Crypto2 days ago
Ethereum: Will the Shanghai Upgrade Make it Easier to Detect Criminals?