• CryptoQuant notes two indicators that Bitcoin is due for some short-term sell pressure.
• Whale activity is rising on Bitcoin spot exchanges, causing the Bitcoin Exchange Whale Ratio to rise to 0.78.
• Large amounts of crypto are flowing into exchanges, which can lead to selling pressure and downward price pressure.
Bitcoin Withdraws Toward $23k
CryptoQuant has noted two data points to keep in mind as Bitcoin withdraws toward $23k. The blockchain analytics firm found that some large players appear to be contributing to the market with sell pressure – including miners.
Whale Activity Rising on Spot Exchanges
The Bitcoin Exchange Whale Ratio – a metric comparing the top 10 Bitcoin transactions flowing into exchanges to the total number of exchange inflows – rose to 0.78 as of March 1st, compared to roughly 0.5 last month. According to CryptoQuant analyst abramchart, this behavior can lead to selling pressure on the market due to large inflows. On Wednesday, inflows were about 10,588 BTC worth more than $286 million at current prices.
Exchange Inflows Generate Downward Pressure
Generally speaking, crypto flowing into exchanges is considered a sign that investors are looking to liquidate their holdings and generate downward price pressure in the process. This could have an impact on the markets if these trends continue in the near future.
Bearish Sentiment Growing
Of 6 respondents who analyzed CryptoQuant’s data, 4 interpreted it as bearish news for Bitcoin’s short-term outlook going forward. This suggests that many believe selling pressures could potentially cause prices for BTC to decline over time if these patterns remain consistent in the coming days and weeks ahead.
It remains uncertain how long this trend will continue or what it may mean for Bitcoin’s future price performance overall; however, it appears traders should be aware of potential selling pressures from whales and miners in particular over the coming days or weeks ahead as these trends persist.