Key points:
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Bitcoin speculators join whales in sending BTC to exchanges, with price then dipping below $112,000.
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Analysis warns that continued whale selling could spark a deeper, longer BTC price correction.
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Exchange order-book activity shows large-scale market exiting, but Bitcoin is attempting to reclaim $114,000.
Bitcoin (BTC) hodlers are selling across the board as BTC price action dips below $112,000, data suggests.
Numbers from onchain analytics platform CryptoQuant show both newer investors and whales sending coins to exchanges.
Bitcoin whales, short-term holders hit exchanges
Bitcoin hitting new three-week lows Sunday has done nothing to steady hodlers’ nerves, and exchange flows show a rush for the exit.
CryptoQuant reveals that the amount sent to exchanges at a loss by short-term holders (STHs) in 24 hours passed 40,000 BTC on Aug. 1.
This was the most since July 15, with contributing analyst J. A. Maartunn describing STHs as “bleeding BTC.”
Aug. 1 saw a considerable spike in overall exchange activity, with CryptoQuant putting the day’s overall tally as a net inflow of 16,417 BTC.
“Conversely, the Exchange Whale Ratio indicator rose to levels exceeding 0.70 meaning that most of these deposits were from whales,” fellow contributor Arab Chain noted in a “Quicktake” blog post Saturday.
“When large deposits coincide with whales dominating these deposits, the market typically enters a phase of selling pressure and rapid decline. If whales continue to deposit Bitcoin to exchanges at the same pace, further pressure on the Bitcoin price is expected.”
The latest spike in exchange inflows compounds a trend in place since early July, when BTC/USD broke through $110,000 for the first time.
“Since early July, the monthly average of BTC inflows to Binance has been steadily rising again. Daily inflows have increased from around 5 300 BTC to 7 000 BTC today, marking a consistent uptick over the past month,” a further “Quicktake” post from contributor Darkfost commented.
“While this rise isn’t particularly sharp yet, it ends a prolonged downtrend, which had been in place since March, suggesting a shift in investor behavior.”
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