The post-BitMEX trading arena is not skewed to selling despite BTC/USD nearing $11,500, CryptoQuant data indicates. A Bitcoin sell-off and associated price fall are not going to happen. In a tweet on Oct. 12, Ki Young Ju, CEO of CryptoQuant, said that average inflows to exchanges were staying low despite rising the Bitcoin price.
Ki: Exchange inflows “still in the safe zone”
Ki highlighted CryptoQuant’s mean exchange inflow metric, that remains comfortably within the low-risk area, showing a low chance of a bitcoin sell-off.
Mean exchange inflow measures the quantity of Bitcoin entering exchanges, with the implication that it could be used for selling or trading activities. By extension, it gives an idea of whale activity — large volume owners planning to divest themselves of BTC.
“$BTC dumping is not going to happen,” Ki noted.
“All Exchanges Inflow Mean usually indicates how many whales are active on exchanges. Above 2 BTC is the danger zone, and we’re still in the safe zone.”
As such, BTC/USD increasing to near $11,500 this week has not motivated investors to sell.
The lack of activity runs in stark contrast to earlier this year. On March 9, a week before kovid-19 pandemic which caused a cross-asset price crash, exchange inflows passed the 2 BTC “danger zone.” Days later, around March 14, inflows hit a peak of almost 5 BTC. Bitcoin subsequently dropped to $3,600.
What BitMEX selling pressure?
CryptoQuant has previously highlighted flows from miners contributing to Bitcoin price action too. Last month, it was a spike in flows from mining pools, also presumably destined for sale, which accompanied a 3% reduction in BTC/USD.
In October, the situation with withdrawals was distorted by BitMEX as the exchange is currently under investigation by U.S. tax authorities. Outflows from BitMEX totaled 50,000 Bitcoin on Oct. 2 alone, according to CryptoQuant data.
BitMEX does not hold as much market share for Bitcoin futures as it did in the past, as Cointelegraph and Digital Assets Data figures confirm,
Different analysts noted that Bitcoin has thus broadly weathered the storm caused by the platform’s troubles, beating out resistance levels at $11,000.
This resilience has emboldened the Bitcoin bull case, with an increasing number of market participants confident in further gains preceding fresh downside.