Bitcoin traders may be preparing to sell as data shows that tens of thousands of BTC are being moved to exchanges.
The latest data from on-chain monitoring resource Coinglass confirms that BTC balances on Binance have increased by more than 50,000 BTC ($1.5 billion) in the past 30 days.
BTC balances on exchanges are increasing
With BTC/USD regularly hitting multi-month highs since mid-March, the temptation to sell tokens for both long-term and short-term holders has certainly increased.
So far, actual selling pressure has been considerably below historical norms, but on-chain data suggests this is about to change.
According to Coinglass, Binance alone has added 51,000 BTC in the past month. Independent data from analytics platform CryptoQuant confirms that since BTC/USD briefly challenged the $20,000 support on March 10, its balance has grown by nearly 100,000 BTC.
Binance BTC balance vs. BTC/USD chart. Source: CryptoQuant
Still, the flow of funds into exchange wallets slowed down last week, with a balance of 22,000 BTC over the past seven days.
The exception is Binance, which has the largest trading volume of any other exchange — over $10 billion in the past 24 hours alone — is an exception. In fact, other major exchanges had BTC withdrawn or balances increased minimally.
Total returns for the 30 days to April 28 were around 14,000 BTC, and total holdings on exchanges tracked by Coinglass are currently around 1.9 million BTC.
BTC exchange balances vs. BTC/USD chart. Source: Coinglass
Bitcoin Bearish Bears Strong Around $30,000
The plunge in investors witnessed in recent weeks is said to have increased the pressure on the bulls, turning $30,000 into support for continued upward pressure.
The area around that level is home to all-time high volume, so $30,000 is more than just an important psychological milestone.
The current state of exchange liquidity tracked by DecenTrader suggests that $35,000 is a key area for liquidating leveraged short BTC positions.
BTC/USD liquidity graph (screenshot). Source: DecentTrader
In a market analysis, DecentTrader noted that while BTC/USD recovered from local lows to trade near $29,500 on the day, $30,000 remains out of reach.
“The long-to-short ratio now shows that there are more bears than bulls. This coincides with us seeing close to $1 billion in open interest (OI), which suggests a lot of people are shorting the $30,000 resistance level.”
Bitcoin long/short ratio chart.Source: Twitter
- Changpeng Zhao entered the top 3 financial giants with a net worth of US$28.2 billion
- Token Sale Open Campus (EDU) on Binance Launchpad Now Open for Registration in 3 Hours
As reported by Cointelegraph