Bitcoin retraces amid 29,696 BTC inflow to exchanges

TL;DR Breakdown

• About 29,696 BTC was transferred to exchanges last week, causing a noticeable spike in the exchanges’ supply. 
• The inflows coincided with the drop in the price of BTC below $50,000. 

The largest cryptocurrency Bitcoin (BTC) returned to the $50,000 price level a few days ago. However, BTC lacked enough buying momentum to sustain the price above that level. Data from Glassnode shows there was a massive inflow in exchanges, which is usually a bearish indicator that signals imminent selling pressure.

Nearly 29,700 BTC moved to exchanges last week

According to the Glassnode data shared by a crypto analyst, Willy Woo, Bitcoiners moved about 29,696 BTC to exchanges within the past seven days. 

Note that BTC supply on exchanges has been declining since the past month, probably as more people were accumulating and sending their coins to external wallets at sub-$50k. However, the inflow seen last week was significant to the extent it caused a noticeable spike in the exchange’s reserve chart. 

There’s also a significant amount of BTC that moved to exchanges in the last 24 hours. About $2.3 billion worth of BTC was transferred to exchanges; however, only $1.5 billion was moved off exchanges, resulting in a net flow of +$828 million.

Judging the data, it seems Bitcoin whales or traders had targeted the $50,000 price range with short calls. If Bitcoin must continue on the uptrend, then this is “not a trend we want to see continue,” says Willy Woo. 

BTC exchange reserve

BTC reserve on all exchanges has risen to almost 2.520 million BTC. This accounts for a 1.77 percent increase on the three-month low recorded on August 11. 

At the time of writing, BTC was down by 2.45 percent on the 24-hour count, trading at $48,568. On the seven-day count, however, BTC is still up by five percent, with a $35.2 billion 24 hours trading volume.