Bitcoin Price Stabilization After Bear Market Activity
After several days of significant bear market fluctuations, Bitcoin seems to be finding some stability, bouncing back to around $86,000. Recent on-chain data indicates that numerous investors attempted to take profits throughout the week, contributing to substantial losses for the top cryptocurrency.
Exchange Inflows Rise Amid Price Declines
Cryptocurrency analyst Ali Martinez recently noted on X that a large volume of Bitcoin was moved to centralized exchanges over the last week. Data from Santiment suggests that around $20,000 of BTC, worth approximately $2 billion, was transferred to these exchanges in that time frame.
This increase in exchange inflow, which measures the amount of Bitcoin entering centralized exchanges during a designated period, is vital. It usually indicates selling activity, which can lead to downward pressure on prices when supply outstrips demand.
Further supporting this uptick, Julio Moreno, CryptoQuant’s head of research, shared data showing that inflows on Friday, November 21st hit about 81,000 BTC, marking the highest inflow since mid-July.
This recent surge in inflows is likely responsible for the volatility of Bitcoin prices on that day, pushing the cryptocurrency down to just over $80,000 as the weekend approached.
Currently, Bitcoin’s price stands at approximately $86,070, reflecting an increase of more than 2% in the past 24 hours.
CryptoQuant CEO Discusses Profit-Taking Phase
Ki Yong-joo, the CEO of CryptoQuant, mentioned that Bitcoin seems to be in a profit-taking phase, as shown by the growth in exchange inflows. He based this observation on the Profit and Loss Index, which assesses profit and loss levels across wallets.
According to Ju’s insights from the P&L index, Bitcoin is entering a bear market according to traditional cycle theories. He emphasizes that only macro liquidity can disrupt this profit-taking cycle, similar to what was observed in 2020.
This context puts a spotlight on the upcoming Federal Open Market Committee (FOMC) meeting in December, especially given the lowered expectations for interest rate cuts by the US Federal Reserve.
