Bitcoin Exchange Inflows Shrink Amid $125,000 Rally – More Upside Ahead?

As Bitcoin (BTC) hit a new all-time high (ATH) of $125,708 on Binance yesterday, BTC exchange inflows are starting to show signs of slowing ￰0￱ a result, crypto analysts are confident that the top cryptocurrency by market cap may be on the cusp of a healthy ￰1￱ Exchange Inflows Slump Amid New ATH According to a CryptoQuant Quicktake post by contributor ChainSpan, fresh on-chain data shows that the average amount of BTC inflows into exchanges such as Binance has decreased ￰2￱ Reading: Bitcoin Sharpe-Like Ratio Shows Market In Wait-and-See Mode At $119,000 To recall, BTC sent to exchanges is usually seen as a warning sign, as it suggests that investors are attempting to sell their holdings at prevailing market ￰3￱ a result, high inflows to exchanges typically create selling pressure on the underlying asset’s ￰4￱ the contrary, a decrease in exchange inflows indicates that BTC holders are opting to hold their assets in cold ￰5￱ of the cascading effects of lower exchange inflows is that it could lead to a “supply crunch” for BTC, which may lead to extraordinary price appreciation in a short ￰6￱ noted that as Bitcoin’s price surged from $108,000 to $125,000 over the past few weeks, the inflow average for the cryptocurrency has dropped from 0.55 to ￰7￱ suggests that the current rally is being driven by organic market demand and holding ￰8￱ simply, the increase in BTC’s price is not happening in tandem with a speculative selling wave, but rather on a foundation of reduced selling ￰9￱ analyst added: In the short term, this backdrop supports the upward trend.

Yet, if large inflows into exchanges suddenly appear in the coming days, it could be a sign that major players are preparing to ￰10￱ such a case, a short-term correction in the price may ￰11￱ CryptoQuant analyst concluded by saying that although the current market conditions point toward low selling intent and strong demand for BTC, a sudden spike in exchange inflows could derail the digital asset’s ￰12￱ a result, investors should keep a close eye on the ￰13￱ BTC Surge Further In Q4? While BTC has already created a new ATH, some crypto analysts forecast that the digital asset may record more gains in the coming ￰14￱ analyst Rekt Capital predicted that BTC could peak sometime in ￰15￱ Reading: A Breakout To New Highs?

Bitcoin’s Bullish Wave Eyes $130k As RSI Stays Firm Similarly, recent analysis by the team at The Bull Theory forecasts that BTC may surge as high as $143,000 in October. Historically, October has been one of the strongest months for BTC in terms of price ￰16￱ said, BTC must first ensure it decisively breaks through the stiff resistance at $125,000 and defends the support level at $118,000. At press time, BTC trades at $125,189, up 1.9% in the past 24 ￰17￱ image from Unsplash, charts from CryptoQuant and ￰18￱