BTC’s price has been impacted by recent market conditions. It is now at $25.5K. This massive drop was triggered by the recent litigation Binance, which is one of the largest cryptocurrency exchanges in the world, filed against the U.S. Securities and Exchange Commission. Investors panicked and sold their positions, which led to a decline in the cryptocurrency market.
Bitcoin has not yet reached its lowest level
Just as market experts predicted a possible price surge for Bitcoin, the cryptocurrency market experienced a decline following the SEC charges against Binance. Some analysts have speculated that Bitcoin’s current price is not its lowest.
Recent data shows a significant decrease in the amount of coins deposited into exchange wallets. The amount of coins that are deposited in exchange wallets is called the “exchange inflow”.
Glassnode, a firm that provides on-chain analytics, has identified this trend in cryptocurrencies like Bitcoin, Ethereum BUSD, USDT USDC and DAI. Data shows that the exchange inflows of these important assets are surprisingly low at $1.84 billion. This is roughly $10.36 billion lower than the maximum inflow during the sell-off of May 2021.
This represents a decline of approximately 85% from the peak reached nearly two years ago. Analysts believe that this trend is due to recent liquidity exits and capitulation events. Note that large inflows are indicative of a negative sentiment, while decreasing values indicate the opposite.
Coinglass’ tracker data shows that traders have liquidated positions worth nearly $250 million in the last four hours, primarily because they anticipated an increase in price.
What can we expect from BTC price Next?
Bitcoin (BTCUSD), on the daily chart has fallen below the critical $27,000 threshold. This indicates a downward trend. Traders can now focus on the immediate support at $25.5K, and the RSI to predict the next move.
BTC price slowed down after forming a new low of $25,566, indicating that bulls were able to hold the price and defend the level for a bullish turnaround. There’s currently a fierce battle to bring the BTC price down below $25K, as market conditions are heading towards a bearish sentiment after the SEC’s suit.
If Bitcoin continues experiencing downward pressure around the $25,544 mark, it may fall again after a massive selling off by short-term investors. The next level of support for BTC will be $24K.
On the positive side, a possible rebound is possible if BTC reverses its current direction and surges over the 38.6% fib level. The price will rise above $27 409 if the surge towards $26,918 occurs.