Buying Pressure on Bitcoin Dwindles as more BTC Moving to Exchanges
Bitcoin’s bearish momentum continues, data shows more Bitcoins are transferring to exchanges from cold wallets, which means the selling pressure is on the rise.
Bitcoin’s bearish momentum continues, given that the leading cryptocurrency slipped below $19,000 amid buying pressure shrinking.
Market analyst Ali Martinez pointed out:
“Bitcoin shows no signs of buying pressure from miners and whales! Addresses holding 1,000 BTC or more have remained pretty much flat since August, while miners' reserves have found a floor of around 1.86 million BTC.”
Source: Glassnode
With buying pressure being a stepping stone toward a bullish run, BTC needs this trait to kickstart an uptrend.
On the other hand, more BTC has been moving to crypto exchanges, signifying the emergence of selling pressure. Crypto insight provider Santiment disclosed:
“1.69M total Bitcoin (currently the equivalent of $33.5B) was moved to exchanges from September 7th to 13th. This was the highest amount of BTC moved since October, 2021.”
Source: Santiment
Whenever coins are transferred to crypto exchanges, this usually shows that selling pressure might be building up because coins are moved from cold storage and digital wallets for liquidation purposes.
For instance, long liquidations hit $29 million in a span of 15 minutes. Market insight provider On-Chain College stated:
“$29 million in Bitcoin long liquidations in 15 minutes as price drops below $19k.”
Source:Coinglass/On-ChainCollege
Bitcoin was down by 7.96% in the last 24 hours to hit $18,447 during intraday trading. With growing global monetary tightening and regulatory concerns, it remains to be seen how the top cryptocurrency plays out in the short term.
For instance, investors are preparing for volatility due to the major interest-rate hike, which is expected this week from the Federal Reserve (Fed) to fight price pressures.
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