After Bitcoin's massive breakout above $ 10,000, Bitcoin whales, investors that own many currencies, have started moving their Bitcoin to exchanges again. Throughout 2020, especially after the collapse of March 12, the number of Bitcoin withdrawn from exchanges increased tremendously.
This was a sign that investors and cryptocurrency enthusiasts were not eager to continue selling their Bitcoin, but rather to keep it.
According to CryptoQuant data, the amount of Bitcoin being deposited on exchanges has now increased significantly.
#BTC whales are sending Bitcoins to exchanges. #Stablecoin whales are sending stablecoins to exchanges as well.
This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy / sell pressures. https://t.co/15iFYpf48t pic.twitter.com/ijCB7B44v0
– Ki Young Ju (@ki_young_ju) July 30, 2020
It is important to note that it is still less than the amount of Bitcoin that was withdrawn in March and April. Also, as some users have noted in the responses, the Market Makers move funds to balance their own books, something that does not filter on the chart.
This does not necessarily mean that Bitcoin will suddenly crash, of course, many people want to make a profit, but demand can always be greater than selling pressure. Also, Bitcoin can be used on many exchanges to enter long positions with leverage. For example, on BitMEX, users can only deposit Bitcoin and use it to buy Bitcoin with leverage, making it unclear whether Bitcoin's entry means there will be more selling pressure or buying pressure.
Bitcoin in the short term remains bullish
From a technical point of view, Bitcoin is extremely optimistic, especially in the short and medium term. The daily chart has clearly created a bullish flag despite the RSI being too widespread.
This bullish flag is remarkably healthy as the post had increasing bullish volume and the flag is seeing a decline in trading volume awaiting the next stage. Overbought RSI will not stop buyers as long as FOMO and demand continue to rise, something that happened in the past many times.
– skew (@skewdotcom) July 30, 2020
Today, however, around $ 745 million in Bitcoin options will expire, which could push Bitcoin above $ 12,000 as the current sentiment is very optimistic.