The following is a list of data Coinglass reported that over $1.6 billion worth of liquidations were made in the crypto markets during the past day, most of which involved long positions. Increased exchange inflows could crash Bitcoin (BTC), further under the $112,000 important support level.
Bitcoin Falls, How Much Will it Lose?
Bitcoin fell today from about $116,000 down to just $111,800, amid the volatility of the crypto market due to concerns regarding the US government shut-down. Kalshi is currently running prediction markets giving A 70% chance that the shutdown will occur in 2025.
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PelinayPA commented on today’s BTC prices, noting that the BTC market recovered at the beginning and end of September when almost 65,000 BTC was withdrawn.
The chart below shows BTC withdraws from exchanges. Typically, large outflows from trading platforms indicate that investors are moving their holdings to personal wallets – reducing immediate selling pressure and signaling a bullish trend.
Recent trends indicate that these outflows are decreasing. Since September 20th, data on the exchanges show that more and more investors choose to keep their coin in the exchanges.
PelinayPA posted another graph which shows BTC Deposits to Exchanges. Between September 17-19, Bitcoin deposits to exchanges increased to almost 40,000 while the Bitcoin price fell to $117,000
In the eyes of those who are not familiar with BTC, large inflows into exchanges typically indicate that more investors want to sell their coins, and therefore move them from private wallets onto exchange platforms. The price can be pushed down in the short term as a result of this, since higher exchange supply may outweigh increased demand.
CryptoQuant’s analyst stated that BTC exchange outflows were greater than inflows during the bull run between September 7-15, which supported a bullish trend. After September 17, however, BTC inflows outflows were equal, causing strong selling pressure. BTC was pushed down to $112700. She concluded that
The inflows continue to be high, while the outflows have been relatively low. This indicates short-term downward pressure. BTC’s price could rise sharply if the outflows start to pick up again. This would indicate an accumulation. If not, there is still a risk of further decline.
Why should BTC holders be worried?
Bitcoin’s decline to $112,000 was not unexpected. Recent on-chain data had already hinted BTC might be having problems due to the absence of whale participation at the rally.
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BTC’s recent price drop occurred just after the US Federal Reserve lowered interest rates 25 basis points. The flagship cryptocurrency dropped, but experts are not concerned. believe It is far from being a true capitulation.
CryptoQuant’s CEO Ki Young Ju was recently interviewed predicted BTC may reach a maximum of $208,000 in the current market cycle. BTC was trading at $113.175, which is down 2.1% over the past 24 hour.
Charts from TradingView.com and CryptoQuant.com.
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Source: www.newsbtc.com
