Bitcoin’s price finally made a move yesterday, losing around $800 of its value at one point. This came after a few days of consolidation and sideways trading, but could have it been expected? Interestingly enough, BitMEX, the most popular Bitcoin margin trading exchange, recorded an inflow of $28 million worth of BTC in the last 24 hours.
BitMEX BTC Inflow
🚨 24H BTC on-chain flows:#binance $71M in | $61M out#bitmex $28M in | $9M out#bitfinex $14M in | $15M out#bitstamp $23M in | $13M out#bittrex $5M in | $4M out#poloniex $2M in | $4M out#kraken $24M in | $47M out#huobi $55M in | $74M out
More @ http://t.co/u90eafzR5J
— TokenAnalyst (@thetokenanalyst) November 9, 2019
In general, over the past seven days, BitMEX saw an inflow of around $92 million with $89 million worth of outflows, meaning that the exchange is on the positive.
Interestingly enough, the surge in inflows coincides with the serious movement in Bitcoin’s price. However, this is not the first time that we see a correlation of the kind.
For example, a month ago, Bitcoin’s price dropped from $8,800 to $8,300 in just a matter of hours, and the popular crypto exchange noted another serious cash inflow of $26 million.
Bitcoin Price Reaction
Just a few weeks ago, Bitcoin’s price went through a surge that we hadn’t seen since 2011 – it increased with more than 40% in a day, touching $10,350. The retracement afterward took the price down to around $9,300, where it traded sideways for some time. It was this consolidation period that had a lot of people thinking that another move was on the way – and that’s exactly what happened.
Yesterday’s high was around $9,270, and with a few violent hourly candles, it dropped to the lowest point of the day – $8,660, resulting in a 6.5% decrease. At the time of this writing, Bitcoin’s price has risen slightly to $8,800 level. Looking on the technical side, if the price is set to recover it needs to break the first resistance level at $8,883, and if it continues upwards, the next one is at around $9,100.
However, if the bearish trend is not over, the support level can be found at the 50-days moving average – $8,600 and another one at $8,400.
Bitcoin’s total market capitalization has dropped slightly under $160 billion, and its dominance sits at 66.4%.
It’s hard to tell if Bitcoin’s price decreases and BitMEX’s inflows have serious correlations, but it’s undoubtedly noteworthy.