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A Record $168M in BTC Flows into Exchanges as Profit-taking Continues
The recent excitement in the crypto market cooled off after BTC faced rejection at $50K on August 26. According to coinmarketcap, the price of bitcoin slid to as low as $46,457 on Thursday. However, bulls finally regrouped to halt any further losses.
Will Clemente, the Lead Insights Analyst at blockwareteam, predicted that a rejection at $50K was coming. According to his analysis, Clement forecasts that some profit-taking would happen at that level. The young analyst explains that the whales caused Thursday’s pullback by selling a significant amount of their holdings.
Meanwhile, data from Santiment confirms that whale activity and exchange inflows are steadily rising. In their latest tweet, the platform noted that BTC inflows into exchanges had matched a June 19, 2019 record high of $1.68M.
Increasing inflows into trading platforms indicate more investors have geared up to sell their holdings at current prices. If that happens, Santiment warns that the crypto market could see increased volatility in the coming days.
Important Support Levels to Hold
The current end-of-month showdown between buyers and sellers will likely raise questions about where the Bitcoin price could head next. The rejection at $50K was very significant, as Michaël van de Poppe sees the bull’s price level as a critical area.
The market analyst now expects BTC to consolidate losses at lower levels. However, he is confident that the solid $44K support will hold and protect the king coin from a further downtrend. Nonetheless, he warned that a slip below that crucial support could spark FUD over an imminent bear market cycle.
“It’s obviously not a bear market, but the overall consensus is that emotions can take over. Especially if Bitcoin corrects some more towards $44,000 or potentially $42,000, the topic of ‘long bear cycle’ will start to take over,” Michaël tweeted.
Whalemap on-chain data indicates no reason for market participants to start calling for a bearish market cycle. The crypto tracking website shared a tweet showing that the coin remains well bid at $46.2K, with limited selling pressure between that level and $57,400.
‘Tapering’ Could Boost BTC Price
Most investors chose to stay on the market sidelines on Friday amid an imminent report from the US Federal Reserve. The Fed expects to issue revised economic policies on August 27 to help steer the economy through the pandemic.
Some experts expect the Fed to implement economic “tapering”. Consequently, the event could result in the scaling down of asset purchases from the government. Such a move would dampen the mood in traditional markets. Also, it may trigger more demand for alternative digital assets.