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John P. Njui • BITCOIN (BTC) NEWS • SEPTEMBER 23, 2020
In summary:
The number of Bitcoin addresses depositing BTC to crypto exchanges has doubled since the beginning of 2020. This is according to the team at Glassnode who also added that approximately 100,000 unique Bitcoin addresses send BTC to crypto exchanges on a daily basis. Furthermore, the last time such an influx of BTC to exchanges was witnessed, was during the peak of the 2017 bull market.
The recent Bitcoin pullback from $11,000 levels to a local bottom around $10,300 caught many crypto analysts off-guard, specifically those who rely on on-chain data to anticipate major BTC moves. What usually happens before such as sell-off, is the rapid transfer of large amounts of Bitcoin as is so often seen with BTC miners. However, this was not the case this past week.
According to veteran Bitcoin analyst, Willy Woo, the recent pullback originated from within exchanges further providing a link with the analysis of the team at Glassnode that points towards continual Bitcoin deposits to exchanges since the beginning of the year.
Bitcoin traders could be transferring their BTC and setting limit orders to maximize on their Bitcoin profits in anticipation of a potential bear market brought about by an uncertain stock market.
Mr. Woo shared his analysis of the recent pull-back via the following tweet.
In terms of the short term price of Bitcoin, there have been a few calls for BTC dropping hard below the psychological price level of $10k and even as far down as $7,700. However, Mr. Woo sees the latter scenario highly unlikely as explained below.
While I've heard talk of bearishness down to even 7k, I don't see fundamentals supporting this as a likely event.
On spot markets (Binance listed below), we have plenty of bids below this level and a liquidity gap above through to 10.8k-11k.
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Original article posted on the EthereumWorldNews.com site, by John P. Njui.
Article re-posted on Markethive by Jeffrey Sloe
