Bitcoin (BTC) reversed buying trends throughout May 10, as the BTC/USD pair plunged below $30,000 for the first time since July 2021.
Data from on-chain analytics firm CryptoQuant showed that exchange reserves began to rise as panic gripped crypto markets.
Exchanges begin to fill with Bitcoin
After seeing a sustained downward trend, the amount of BTC on major exchanges has started to rise once again.
According to CryptoQuant, which tracks the balance of 21 major exchanges, sellers sent a total of 37,537 BTC to accounts between May 6 and May 9.
The deposits came as the price of BTC fell from $36,000 to $29,700, subsequently recovering to around $32,000 at the time of writing on May 10.
In private comments to Cointelegraph, CryptoQuant marketing chief Hochan Chung said the drop not only implicated speculators, but formed the next phase of a more concerted desire to reduce the BTC exposure of the largest token holders. .
“The mass influx did not start yesterday. It has started since May,” he said.
“Bitcoin price down from selling whales. Since the beginning of May, growing exchange reserves have been increasingly dominated by whale deposits. As whales move their coins to exchanges, it exerts downward pressure on the price of Bitcoin”.
Other sources, as we have already told you about earlier, also noticed a change in the behavior of the whales, which however occurred comfortably above the realized price of Bitcoin, which is around $24,000.
Long positions are punished in the crypto market crash
At the same time, other traders were not so lucky.
According to figures from on-chain monitoring resource Coinglass, Bitcoin’s plunge below $30,000 triggered some of the $1 billion-plus cryptocurrency market selloffs.
Most of them were long positions coming from altcoins. In the 24 hours to press time, BTC accounted for some $330 million of total settlements, with the rest coming from altcoins.
However, when it comes to short-term price targets, the weekend CME futures gap, centered at $35,000, was gaining popularity among traders during the day.
“Bitcoin seems to be on a mission to recapture that gap from the CME”, said the popular Twitter account, IncomeSharks.
“People who sold at $34,000 to buy back at $37,000 will end up buying above $40,000. It always happens at the lows. The bears get greedy.”
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