Bitcoin’s (BTC) price continues to trade under $32K as we approach another weekend. The top cryptocurrency lost another key support of $32.4K yesterday and currently trying to hold onto the final support zone of $31K-$31.5K before crashing below $30K. BTC is trading at $31,338 with a 3.5% decline over the past 24-hours.
Amid growing selling pressure a massive Bitcoin inflow was seen on Binance with a total of 14,550.8 BTC being transferred to Binance wallet. The movement of Bitcoin onto exchanges is considered a bearish sign as traders shift their holdings for selling.
The massive BTC inflow comes at a very crucial time since the majority of exchanges have seen an outflow of Bitcoin despite price trading under $35K. However, Willy Woo, popular analysts suggested we should not see inflows independently rather along with outflows to check the full sentiment.
Chart is inflows. Meaningless without outflows. We track net flows to gauge demand/supply. Both flows often track each other closely, maybe because of arbitrage flows between exchanges.
Report uses 2 week average net flows which is more macro less about the hourly movements.
— Willy Woo (@woonomic) July 16, 2021
Is Bear Market Confirmed?
Ki-Young Ju, a crypto analyst beleive the selling pressure is too high and suggested when the exchange whale ratio remains consistently in the 85% region, it indicates a dominant bearish sentiment in the market.
Young pointed that the exchange whale ratio has remained over 85% consistently since May and it indicates whales are sending their holdings onto exchanges.
$BTC Selling pressure seems to be high.
— Ki Young Ju 주기영 (@ki_young_ju) July 16, 2021
The low liquidity weekend could only add more pressure on BTC price as it faces an uphill task. The top cryptocurrency has recently fallen to a 5-month low of $28,883 and if it fails to hold the $30K support, analysts predict the next support zone could be in the price range of $24K-$28k.
Recent comments from Federal Reserve chairman Jereme Powell who said cryptocurrencies have failed as a mode of payment also played against the market sentiment of Bitcoin and other cryptocurrencies. If the selling pressure doesn’t ease up and the Binance transfer was indeed a whale trying to sell their stash, then the price outlook could go from bad to worse for the top cryptocurrency.