Bitcoin Price Prediction: BTC Expects Volatility After Largest Exchange Inflow Since June 2019

By John Isige
Published August 27, 2021 Updated August 27, 2021
Best Buy In

DeFi Platform

Exchanges

Wallet

bitcoin

Bitcoin Price Prediction: BTC Expects Volatility After Largest Exchange Inflow Since June 2019

By John Isige
Published August 27, 2021 Updated August 27, 2021
  • Bitcoin price managed to hold above $46,000, supported by the 200-day SMA.
  • The bellwether cryptocurrency is headed for high volatility following 1.68 million BTC exchange inflow, the largest since June 19, 2019.

Bitcoin is about to step above $47,000 after the declines that dominated this week’s trading embraced crucial support. The flagship cryptocurrency had pulled the entire market down with it due to the rejection suffered above $50,000.

Although several tentative support areas failed to keep BTC afloat, the 200-day Simple Moving Average (SMA), highlighted at $46,000, halted the correction. Recoil from this level currently sees Bitcoin put up a fight to crack the resistance at $47,000 to regain the lost ground back to $50,000.

Bitcoin Price Holds Key Support But Is It Sufficient

According to the latest on-chain data from Santiment, a global behavioral and analytics platform, “Bitcoin just made history with its largest day of exchange inflow since June 19, 2019. These days are now tied for the largest inflow day of all-time both with 1.68M $BTC flowing to exchanges on these respective days. Expect increased volatility.”

Bitcoin Exchange Inflows Soar To Record High

Bitcoin Exchange Inflows
Bitcoin Exchange Inflows by Santiment

Note that increase exchange inflows often lead to heightened volatility. Holders tend to sell when they send more BTC to exchanges. Hence, the bellwether cryptocurrency may encounter more volatility in the coming days, especially with the critical support being tested.

If the support at the 200-day SMA is broken, more sell orders will be triggered, pushing Bitcoin down to $40,000. Besides, the Moving Average Convergence Divergence (MACD) indicator has recently flashed a sell signal, crediting the pessimistic outlook.

BTC/USD Daily Chart

BTC/USD price chart
BTC/USD price chart by Tradingview

The Relative Strength Index (RSI) affirms the bearish grip, hinting at the pulldown lasting longer. Perhaps support at $44,000 and $42,000 will avoid losses toward $40,000.

Nonetheless, retaining the support at the 200-day SMA would encourage more buyers to join the market. In turn, pushing Bitcoin to close the gap at $50,000.

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Loading Next Story