Biggest Bitcoin exchange inflows since 2018 put potential $20K bottom at risk
Bitcoin (BTC) could be on the verge of a retail major sell-off as exchange inflows spike to almost three-and-a-half-year highs.
Data from on-chain analytics platform CryptoQuant shows users of 21 major exchanges sending coins to their wallets en masse June 14.
As BTC/USD fell to lows of $20,800, panic appeared to set in among traders, and despite a reversal that at one point topped $23,000, few seemed willing to trust that the worst was over.
Since then, spot price action has returned to near $21,000, while 24-hour exchange inflows reached 59,376 BTC.
According to CryptoQuant data, this is the largest daily inflow since November 30, 2018. On that day, exchanges recorded 83,481 BTC of net inflows.
May 9, 2022 ended with 29,082 BTC in net inflows for the platforms monitored by CryptoQuant.
Concerns may thus now turn to whether even more sell-side pressure will emerge in Bitcoin markets over the coming days and weeks. Around a month after the 2018 influx, BTC/USD hit its cycle bottom of $3,100, 84% below its prior all-time high of $20,000.
As Cointelegraph reported, analysts are of mixed opinion when it comes to whether Bitcoin will repeat the trend this cycle. An 84% drawdown would mean a bottom of just $11,000.
In a separate analysis of the price situation, statistician Willy Woo concluded that macro market movements would dictate Bitcoin's bottom.
"I think it's simpler than this, IMO we'll find a bottom when macro markets stabilise," part of a Twitter thread contemplating various price support theories read.
Analyzing who has been selling so far, meanwhile, CryptoQuant CEO, Ki Young Ju, pointed the finger at derivatives traders and largest global exchange Binance.
Related: 'Too early' to say Bitcoin price has reclaimed key bear
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