Bitcoin might see a price drop as coins return to exchanges

on Jul 16, 2020
  • Bitcoin price might soon see a small retracement, which could take it below $9k mark.
  • Different analysts predict different scenarios, but most agree that coin will fall under this support level.
  • Correlation with the stock market and recent Twitter hack could also impact the coin's price negatively.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Analysts have noticed recently that more and more Bitcoin (BTC) is being returned to crypto exchanges, which might be an indication of an upcoming sell-off. If this happens, analysts expect that the coin’s price might once again see a drop, and possibly break a support level at $9,000.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Bitcoin is flowing back into exchanges

Copy link to section

Recent data provided by CryptoQuant shows that inflows of Bitcoin to various cryptocurrency exchanges grew significantly yesterday, July 15th.

Whenever this happens, traders are most likely doing it in order to be able to quickly enter positions and sell their coins. Of course, the opposite might also be true, in which case, they might be aiming to buy altcoins.

However, Bitcoin’s price performance has been rather weak over the past two months, and many expect downward volatility to take over.

How far will BTC drop?

Copy link to section

Yesterday’s data shows that around $38.5 million in Bitcoin (4,229 BTC) recently entered Kraken exchange. The trading platform’s CEO, Ki Young Ju, said that he expects a small pullback as a result. According to him, the price might drop to around $8,800.

While this would mean that BTC would break its rather strong support at $9k, it is still one of the more optimistic forecasts.

Recently, the analyst known as filBfilB highlighted BTC’s 20-week moving average at $8,200. He now says that bulls need to reclaim $9,400 quickly to prevent a bearish wave.

For now, both scenarios remain equally probable, and there is no clear answer as to where the price might go. However, the fact is that the drop has already started, as BTC currently sits barely above $9,100.

Yesterday’s Twitter hack, done for the purpose of performing a Bitcoin scam by hacking influential people’s accounts also did not help the price find a proper foothold.

Meanwhile, coronavirus pandemic is still on-going, and there are plenty of geo-political situations that could cause a disruption in the stock market, and in extent, the crypto market, due to strong correlation.

Bitcoin Crypto