An analyst warns that if Bitcoin support (BTC) gets closer and closer to $9,000, exchange users could sell a lot…
According to data from the CryptoQuant web-based analysis resource, the amount of BTC on exchanges skyrocketed on July 15.
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When traders return their Bitcoin to the exchanges from a private BTC purse, it suggests that they have a desire to trade or sell in the short term.
The opposite is also true, as Cointelegraph reported; the balance of exchanges witnessed a long-term downward trend that in May reached its lowest point since late 2018, when the BTC/USD fell to USD 3,100.
Now, says CryptoQuant, nervousness about weak price performance seems to be sending a signal to prepare for downward volatility.
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Looking at Kraken, the big trading platform, data shows that 4,229 BTCs (USD 38.5 million) came in on Wednesday, far more than the average of 500 BTCs (USD 4.55 million) in the last few weeks.
Although the order book data is yet to come in, Kraken may be presenting an anomaly that does not reflect the widespread sentiment of traders, the overall conditions are decidedly bearish.
“I expect a small setback,” CEO Ki Young Ju told Cointelegraph in private comments.
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Ki added that if a sale begins, he does not expect it to coincide with that of March, when an event halved the BTC/USD in a matter of hours.
“In my opinion, it will be around USD 8,800,” he said.
The number is less pessimistic than other recent targets. Earlier this week, Cointelegraph analyst filbfilb highlighted Bitcoin’s 20-week moving average at USD 8,200 as a realistic buying support zone.
For all exchanges, meanwhile, deposits remain well below their March decline levels, indicating that the trend to hold, not sell, continues.
BTC price falls close to USD 9,000
Bitcoin remains tied to movements in the macro-markets, which in turn are dictated by sentiment about the coronavirus and geopolitical tensions between the United States and China.
The status quo has been difficult to change, and was responsible for the trade corridor in which BTC/USD has not left since the third week of June.
At the close of this edition, the pair was trading at USD 9,080, while selling pressure seemed to be increasing according to CryptoQuant’s predictions.
The last time Bitcoin briefly lost the USD 9,000 level was on June 28, reaching a high of USD 9,480 in the meantime.