Traders return coins to exchanges as Bitcoin moves lower, with CryptoQuant expecting a “small” retracement below $9,000.
Bitcoin edging ever closer to a $9,000 support level may lead to a major sell-off by exchange users, one analyst warns.
Kraken posts unusual $38.5M daily BTC inflows
When traders return Bitcoin to exchanges from a private BTC wallet, it suggests they have a desire to trade or sell at short notice.
The opposite is also true. As Cointelegraph reported, exchange balances witnessed a long-term downtrend, which in May, hit its lowest since late 2018, when BTC/USD crashed to $3,100.
Now, says CryptoQuant, nervousness over weak price performance appears to be sending a signal to prepare for downward volatility.
Eyeing major trading platform Kraken, data shows that on Wednesday, 4,229 BTC ($38.5 million) entered — far more than the average of 500 BTC ($4.55 million) over the past few weeks.
While order book data is still forthcoming — Kraken may be presenting an anomaly that does not reflect broad trader sentiment — overall conditions are decidedly bearish.
“I expect a small pullback,” CEO Ki Young Ju told Cointelegraph in private comments.
Ki added that should a sell-off begin, he did not foresee it matching that from March, when a cascading short event halved BTC/USD within hours.
“In my opinion, it’ll be around $8,800,” he said.
For all exchanges, meanwhile, inflows remain far below their March-crash levels, indicating a tendency to hold — not sell — is still in place.
Read full news on cointelegraph.com