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Bitcoin Exchange Inflow Jumps, BTC Price Drop to $63,000 Likely

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Despite the strong whale activity in the market, the Bitcoin (BTC) price remains under constant selling pressure flirting around $66,000. The recent data from CryptoQuant shows that the Bitcoin exchange inflows have surged amid the surge in Bitcoin spending activity.

The Surge in Bitcoin Spending Can Impact the BTC Price

As per the data from CryptoQuant, wallets holding Bitcoins in the 1M-3M, 3M-6M, and 6M-12M age bands have witnessed a notable increase in Bitcoin spending. Over the weekend, nearly 40% of the Bitcoins sent to exchanges came from wallets holding the 3M-6M range, while 20% came from the 6M-12M range, and the remainder being mixed.

This movement of Bitcoins to exchanges will create further selling pressure. The analysis suggests that the selling activity could lead to a short-term increase in the BTC price, followed by a major downturn, potentially resulting in a market free fall.

Courtesy: CryptoQuant

$63,000 Coming for Bitcoin?

Popular crypto analyst Michael van de Poppe stated the BTC price has been stuck for a long time between $57K and $73K and he expects it to decline further in the early part of this week. However, the analyst expects the BTC price to hold firmly in the range of $63K and $64.5K.

Bullish divergence has solidified, with the price attempting to maintain above $66,300. It’s crucial for bulls to step up now and reclaim this range. Bitcoin’s sideways price action has led to some impatience among investors. However, if the BTC price manages to give some surprises on the upside.

Crypto analyst Ali Martinez highlighted a significant potential liquidation event on Binance should Bitcoin’s price reach $67,450. Martinez projected that approximately $19.50 million worth of positions could be liquidated on the exchange under these conditions. This observation underscores the volatility and risk management challenges associated with trading cryptocurrencies at high price levels.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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