Bitcoin is currently hovering above a key support level and any petite sell-off triggered by a group of traders could potentially the snowball turned into a wave of intense selling pressure. This The unstable situation was highlighted according to data from the analytics company Santiment, which revealed that over 30,000 BTC worth approximately $1.83 billion was transferred to cryptocurrency exchanges in a tiny period of time. Undoubtedly, such a huge amount of BTC entering cryptocurrency exchanges is problematic, especially from the point of view bullish prospects for cryptocurrency.

30,000 BTC sold in 72 hours

According to Santiment data highlighted by crypto analyst Ali Martinez, Bitcoin addresses holding between 1,000 and 10,000 BTC sold or redistributed approximately 30,000 BTC in the last 72 hours. Taking into account the current average price of Bitcoin, this equates to approximately $1.83 billion in BTC value changing hands.

#Bitcoin the whales sold or distributed approximately 30,000 $BTC in the last 72 hours, a total of $1.83 billion! pic.twitter.com/y9FsARYrmM

— Ali (@ali_charts) October 10, 2024

Stock market data coming from IntoTheBlockwhich tracks the activities of different cohorts of holders, shows that approximately 18,220 BTC was transferred to exchanges on October 8 alone. This was followed by an additional 16,000 BTC on October 9 and approximately 13,800 BTC on October 10.

While not all inflows result in immediate sell-offs, vast volumes of BTC entering exchanges often suggest that investors are preparing for potential sales. This continued inflow of currency could signal increasing selling pressure, and market participants may be preparing to liquidate their holdings in the near future.

Bitcoin under increased selling pressure?

From a positive point of view, current sales are largely driven by short-term holders, which has led to a shift in Bitcoin ownership. Much of the BTC being sold is being taken over by long-term holders who see the decline as an opportunity to strengthen their positions. This change in ownership can stabilize the market because long-term holders are typically less likely to sell in the future.

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Moreover, exchange inflow data shows a gradual decline in the amount of BTC being sent to exchanges each day. This trend indicates that fewer and fewer investors are moving their Bitcoins to exchange wallets, which may indicate that the recent wave of sell-offs are losing momentum.

As for the foreign exchange reserve, data from CryptoQuant shows a steady decline in the amount of BTC held on wallets controlled by cryptocurrency exchanges since the beginning of October. This decline in foreign exchange reserves belies fears of a continued sell-off because it means there are fewer Bitcoins available on exchanges. If this trend continues, it could further reduce selling pressure and provide a more bullish outlook for Bitcoin’s near-term recovery.

At the time of writing, Bitcoin is trading at $60,854, which puts the floor at around $60,000.

Featured image created with Dall.E, chart from Tradingview.com