One of the Bitcoin analysts has indicated that if BTC reaches close to $9,000 support level then exchanges might start selling it off.
Recently the CryptoQuant released a data which states that on July 15, the inflow of Bitcoin to exchanges have risen suddenly.
The data analytics company further mentioned that this sudden inflow was started by the Bitcoin traders who were returning their BTCs to exchanges. This movement indicates that the traders were trying to trade or sell-off their BTC in very short notice.
A report stated that in May 2020, the exchange balance experienced a long-term downtrend. Last time the exchange was collapsed in the year 2018 where after a huge loss its value reached $3,100.
The data released by CryptoQuant shows that since a very long time the price performance of the exchanges is not improving in the market, in future there could be chances that they experience downward volatility, the exchange should be prepared for this.
The data analytical firm recorded the performance of Kraken on July 15 and found that on that same day a total of 4,229 BTC worth $38.5 million entered the platform. It is to be noted that since the past few weeks, an average of 500 BTC worth $4.55 million, is accepted by the platform.
According to the order book data anticipates that overall conditions of Kraken are bearish. Although Kraken has shown inconsistency in its performance, it does not represent Kraken’s broader sentiments.
The CEO of CryptoQuant, Ki Young Ju recently has said that he is expecting a small fallback from the exchanges. He also mentioned that very soon the exchanges would initiate sell-off. Ki added, “In my opinion, it’ll be around $8,800.”.
A report published earlier mentioned that in 20-week the average movement of Bitcoin reached $8,200, which is a realistic purchase support zone.
CryptoQuant has notified that the future inflow of Bitcoin would be nothing like that of March-crash.
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