Investors and traders continue to sell Bitcoin during the current price drawdown, putting further downward pressure on the asset, the analytics firm stated.
Bitcoin News
CryptoQuant analysts warn that continued selling pressure from Bitcoin whales could push the asset lower. Exchange inflows reached a peak of 9,000 Bitcoin on Nov. 21 as the price declined to $80,600 on Coinbase, marking its lowest level in seven months.
Large deposits of 100 Bitcoin or more accounted for 45% of total coins sent to exchanges. The whale cohort sent as much as 7,000 Bitcoin to exchanges on a single day, indicating preparation to sell.
Investors and traders continue to sell Bitcoin during the current price drawdown, putting further downward pressure on the asset, the analytics firm stated. The average Bitcoin deposit value reached 1.23 Bitcoin in November, the highest level in a year.
CryptoQuant noted on Wednesday that stablecoin reserves on exchanges hit a record $51 billion, the highest in its history. Bitcoin and Ethereum inflows climbed to $40 billion this week, with major volume coming through two leading platforms.
High stablecoin reserves on exchanges indicate rotation from Bitcoin and altcoins into dollar-pegged assets. Capital often sits in these assets until market participants are ready to re-enter the market.
Analyst James Check flagged remaining leverage that had yet to be flushed from markets earlier this week. A wick into the $70,000 to $80,000 zone to flush the final leverage pockets would not be surprising, he said.
10x Research stated earlier this week that Bitcoin's tactical, oversold rebound is still playing out. The firm identified $92,000 and $101,000 as key resistance zones to watch for the asset. Bitcoin had reclaimed $90,000 and was trading slightly above that level at the time of writing.
BitMine chairman Tom Lee softened his $250,000 Bitcoin target, stating that even returning to an all-time high by year-end is now just a maybe. The analytics platform observed a similar deposit exchange inflow trend for Ethereum, although total inflows have not spiked as significantly.
Other altcoin inflows to exchanges increased this month as the sell-off intensified. Many tokens were pushed back to bear market lows during the downturn.
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