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Traders appear to be preparing to sell their bitcoin holdings. According to recent data, significant amounts of bitcoin are currently being moved to exchanges.
While market sentiment is cautiously improving, bitcoin could face new challenges ahead.
A Quiet Weekend for Bitcoin #
The price of bitcoin has fallen approximately 17% in November but found support around $85,000 exactly one week ago.
The sharp downtrend hasn’t been broken yet, but the price has since risen by 6%. At the time of writing, bitcoin is valued at $91,370.
Since Thursday, bitcoin’s price has remained nearly stable around $91,000, and the currency shows little momentum this weekend as well. This indicates a waiting market with little clear direction.
Potential Selling Pressure Ahead #
While bitcoin cautiously recovers from recent declines, we may need to prepare for a new wave of selling.
According to data from analytics platform CryptoQuant, the inflow of bitcoin to exchanges remains elevated, suggesting traders are positioned to sell. On November 21, inflows reached a peak of 9,000 bitcoin.
Moreover, these involve large transactions. According to analysts, 45% of the movements involve transfers of 100 bitcoin or more.
While higher inflows to exchanges are often seen as an indicator of potential selling, this doesn’t necessarily have to be the case. However, an increase in supply on exchanges could put additional selling pressure on the price.
Hope Returns to the Bitcoin Market #
Despite the concerning figures from CryptoQuant, hope for a price increase appears to be returning.
For the first time in two weeks, sentiment is rising. The market had been in a state of extreme fear for a long time, but this is now beginning to subside.
Various analysts are also bullish (positive). According to a well-known analyst, bitcoin may have reached its bottom and could soon begin an upward trend.
The analyst cites improving economic conditions in the United States as one reason for this optimism.