Bitcoin Stuck in Range as Exchange Inflows Surge, Raising Risk of Renewed Selling

Suehyeon Lee

Summary

Bitcoin has remained range-bound for about three months, and an analysis said rising exchange deposits at major platforms could signal increased selling pressure ahead.
Inflows of about 106,000 BTC to Binance and about 130,000 BTC to OKX were far above annual averages and were described as levels rarely seen since the end of the previous bear market.
The CryptoQuant contributor added that the current exchange inflow trend could serve as a leading indicator of greater short-term volatility.

Forecast Trend Report by Period

Bitcoin has traded in a tight range for about three months, but rising deposits to major exchanges may be signaling a fresh buildup in selling pressure, according to an analysis.

CryptoQuant contributor Darkfost wrote on April 20 that on-chain data show exchange inflows climbing even as Bitcoin remains boxed into a directionless trading range.

About 106,000 Bitcoin has been moved to Binance-linked deposit addresses, while about 130,000 Bitcoin has been sent to OKX deposit addresses. That is far above the annual averages of roughly 44,000 Bitcoin for Binance and 74,000 Bitcoin for OKX.

Inflows of that size have rarely been seen since the end of the previous bear market, Darkfost wrote. The key detail is that the transfers were made to deposit addresses linked to exchange hot wallets. Investors typically move assets through deposit addresses before they reach exchange wallets when preparing to sell, meaning the increase in deposits may point to a larger supply of coins waiting to be sold.

"The market is currently in a phase where expectations for a renewed advance and concerns over further declines are both at work," Darkfost wrote. With the sideways stretch dragging on and investor fatigue building, some market participants could start unwinding positions.

"Markets can weaken not only during sharp declines, but also during prolonged, directionless trading," he added. "In periods like the current one, exchange inflow trends may act as a leading indicator of rising short-term volatility."

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