Bitcoin traders hit the exchanges when price touches $112,000

Important points

• Bitcoin traders join whales to send BTC into exchanges. The price drops below $112,000

• A continued wave of whale sales could lead to a more severe and prolonged BTC price drop.

• The exchange order book activity indicates a large scale market exit, however Bitcoin is trying to recover $114,000

BitcoinBTCData suggests that hodlers sell across the board when BTC prices drop below $112,000

Onchain Analytics Platform: Numbers CryptoQuant Show both whales and newer investors sending coins into exchanges.

Short-term Bitcoin holders and whales hit the exchanges

The fact that Bitcoin hit a new low of three weeks on Sunday did not calm the nerves of hodlers. Instead, exchange flow shows a panicked rush to get out.

CryptoQuant revealed that short-term investors (STHs), in a 24-hour period, sent 40,000 BTC to exchanges.

J. contributed to the highest number of articles since July 15 with J. A. Maartunn describing STHs are “bleeding BTC.”

CryptoQuant reported a significant increase in exchange activity on Aug. 1. The day was characterized by a net flow of 16,417 BTC.

“Conversely, the Exchange Whale Ratio indicator rose to levels exceeding 0.70 meaning that most of these deposits were from whales,” Arab Chain, a fellow contributor to the “Quicktake” blog post Saturday. 

“When large deposits coincide with whales dominating these deposits, the market typically enters a phase of selling pressure and rapid decline. If whales continue to deposit Bitcoin to exchanges at the same pace, further pressure on the Bitcoin price is expected.”

This latest surge in inflows of exchange funds continues a pattern that has been in place since the beginning of July when BTC/USD crossed $110,000 for a first time.

“Since early July, the monthly average of BTC inflows to Binance has been steadily rising again. Daily inflows have increased from around 5 300 BTC to 7 000 BTC today, marking a consistent uptick over the past month,” A further “Quicktake” post Darkfost, a contributor to the blog.

“While this rise isn’t particularly sharp yet, it ends a prolonged downtrend, which had been in place since March, suggesting a shift in investor behavior.”

Trader: Weekend BTC price action unusual

The following are some of the ways to get in touch with us. Cointelegraph reportedThe event of de-risking and selling off extended to institutional investors as well.

Related: ​​Bearish Arthur Hayes says Bitcoin could retrace to $100K on macro headwinds

Inflows into US Bitcoin ETFs totaled 812 million dollars for August 1. This is the second largest daily outflow on record.

Skew, a popular analyst and trader who specializes in exchange order books, spotted a high-volume participant trying to leave the market.

“Very sizeable quoting like this on a weekend spells out that a very large player needed to bail out of risk before Sunday – next week,” e told X followers Sunday amid “not your average weekend price action.”

“Since weekends are often more illiquid and have wider spreads, this means a desk would have to quote sufficient liquidity to facilitate a large client selling off that risk without causing the market to slip.”

BTC/USD circles $114,000 as of the date written, according to data from Cointelegraph Markets Pro You can also find out more about the following: TradingViewOn the day, grew by 1.3%.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.