Bitcoin (BTC) slumped below $35,000 after temporarily climbing above $40,000 on Wednesday. The bottom for the leading cryptocurrency is currently $34,200.
Investors pile Bitcoin on exchanges
On-chain data shows that the amount of Bitcoin deposited on exchanges has increased over the past few days. According to data provided by Glassnode, on Friday, May 6, 66,615 BTC was transferred from cold wallets to exchanges. It was the highest level recorded since January.
Another on-chain analytics platform, CryptoQuant, shows that on May 5-6, 16,142 BTC entered exchanges with a holding period of less than three months
. ) Meanwhile, with Bitcoin price approaching $34,000, Anbessa, a popular Twitter analyst, highlighted the planned level of support for buying Bitcoin, which she described as “fake” in her latest Twitter analysis on May 6. The level pointed out by the analyst is a region that starts just below $33,000.
What does BTC flowing to exchanges mean? Could there be any further decline?
Bitcoin’s strong tie to the Nasdaq has prompted speculation that weekend dips could indicate further expected declines in the stock market on Monday. According to Jeffrey Halley, analyst at Oanda Research:
BTC was once a benchmark for exchanges and was sometimes the first asset to be liquidated. All over the world, cryptocurrencies are traded around the clock. Fund managers can flock to Bitcoin when they’re looking for a safe haven. According to
Halley, if any negative events occur over the weekend, the Bitcoin price could drop as low as $32,000 and investors could turn their attention to $28,000. Meanwhile, Peter Schiff, who is skeptical of Bitcoin, says that whales are responsible for keeping the Bitcoin price at $36,000.
It's curious that #Bitcoin has held up so well around the $36K level. My guess is there is a concerted effort by large holders to prop up the price. Judging by the continued carnage in every stock related to #crypto, perhaps whales are selling those stocks to buy more Bitcoin.
— Peter Schiff (@PeterSchiff) May 6, 2022
Commenting on the above on-chain data, Colin Wu comments on a critical downward trend.
According to CryptoQuant data, short-term holders can dominate the drop in the last two days. On the 5th and 6th, a total of 11.76k Bitcoin (BTC), which was held for less than 3 months, flowed to the exchange.
