Bitcoin (BTC), which has a market capitalization of $2.4 trillion, reached a new high today. Exchange data, however, shows that BTC inflows have increased sharply following this landmark, raising fears of a possible short-term corrective action.
Bitcoin Exchange Inflows Alert of Pullback
Tarekonchain posted a CryptoQuant Quicktake by which he claimed that BTC was beginning to cool down. Noteworthy, the exchange flows recorded a significant increase right after Bitcoin reached its new ATH.
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This chart, shared by an analyst, highlights the exchange netflows for spot platforms. There are notable spikes of inflows into centralized exchanges. The chart shows short-term investors and whales taking profits.
Tarekonchain stated that this type of activity on the chain is typically indicative of an a local top This could result in a price consolidation or correction that is healthy. They also added:
It’s a classic pattern we’ve seen after previous parabolic rallies – profits are realized, weak hands exit, and price finds a new base.
The analyst also noted that, despite warnings of an impending price correction, overall market structure is still largely positive. As an example, holders who have held their BTC for a long time are reluctant to sell at current levels.
Spot Bitcoin ETFs continue to draw strong capital, supporting the bullish hypothesis. For the week ending July 11, they saw $2.72 billion in net inflows – a clear sign of ongoing institutional interest.
Whales preparing to sell?
Crazzyblockk, a CryptoQuant contributor pointed out an increase in whale activity at Binance. Binance Whale Activity Score indicates that the deposits of large wallets has risen significantly.
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Whales deposit as much as 1,800 BTC in Binance on a single-day basis, and more than 35% are valued at $1 million or higher, indicating a strategic position ahead of volatility.
Crazzyblockk highlighted There are two scenarios that could follow the surge in large deposits. It is possible that large-scale investors have accumulated healthy profits, and are preparing to take advantage of the historic gains.
They might also be looking to use Binance’s liquidity as a hedge, or to open up new positions when the market is experiencing increased volatility. This could be done in either direction. sell-side pressure Binance’s dominance will likely weigh down on BTC bullish momentum.
Market sentiment is generally positive despite rising inflows, increased whale activity and increased market volatility. Retail investor participation has increased. still muted Comparing the current bull run to past ones, it appears that there is still room for growth. BTC is currently trading at $119.449 and has gained 0.8% within the past 24 hour.
Charts from TradingView.com and CryptoQuant.com.
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Source: www.newsbtc.com
