Bitcoin Faces Bearish Pressure As Exchange Inflows | Crypto News
According to data from Coinglass, the crypto market noticed liquidations price more than $1.6 billion over the past 24 hours, with the bulk of them being long positions. Elevated exchange inflows threaten to crash Bitcoin (BTC) additional below the important help degree at $112,000.
Bitcoin Tumbles, Will It Lose $112,000?
Bitcoin fell from around $116,000 to as low as $111,800 earlier today, as the broader cryptocurrency market skilled volatility amid considerations about the US authorities shutdown. Prediction markets on Kalshi are presently giving a 70% likelihood of a shutdown in 2025.
Commenting on today’s BTC price motion, CryptoQuant contributor PelinayPA remarked that at the end of August and early September, nearly 65,000 BTC have been withdrawn from exchanges, which coincided with a price recovery in the digital asset.
The analyst shared the next chart, which reveals BTC withdrawals from exchanges. Typically, large outflows from trading platforms point out that traders are shifting their holdings to personal wallets – decreasing fast promoting stress and signaling a bullish pattern.
That said, latest trends counsel that such outflows have weakened. Specifically, since September 20, exchange data reveals that more traders are selecting to keep their cash on exchanges.
PelinayPA shared another chart which reveals BTC deposits to exchanges. Notably, between September 17 and 19, Bitcoin inflows to exchanges surged to practically 40,000, while the price tumbled to $117,000.
For the uninitiated, high BTC inflows to exchanges normally indicate that traders are shifting their cash from personal wallets to platforms where they are often offered, signaling elevated promoting intent. This creates short-term bearish stress on price, as greater provide on exchanges can outweigh demand.Â
The CryptoQuant analyst added that during the rally between September 7 and 15, BTC outflows from exchanges exceeded inflows, supporting bullish momentum. However, inflows surpassed outflows after September 17, triggering strong promoting stress and pushing BTC down to $112,700. She concluded:
Inflows stay high while outflows are comparatively weak, indicating short-term draw back stress. If outflows increase again, signaling accumulation, BTC might rebound strongly from the $112K zone. Otherwise, additional draw back risk stays.
Should BTC Holders Be Worried?
Bitcoin’s fall to $112,000 mustn’t come as a shock. Recent on-chain data had already hinted that BTC may very well be in hassle due to a lack of whale participation in the latest rally.Â
It is price highlighting that BTC’s latest fall in price got here shortly after the US Federal Reserve (Fed) cut rates of interest by 25 foundation factors. Although the flagship cryptocurrency fell, consultants imagine that it’s still far from a real capitulation.
CryptoQuant CEO Ki Young Ju not too long ago predicted that BTC might top out at $208,000 during the continuing market cycle. At press time, BTC trades at $113,175, down 2.1% in the past 24 hours.
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