Bitcoin Exchange Inflows Surge Over 15,000 BTC Amid Tether Outflows
Bitcoin has experienced mixed market movements, with analysts monitoring on-chain data to gauge its short-term trajectory. On-chain metrics reveal significant outflows of Tether (USDT) and elevated inflows of Bitcoin (BTC) into exchanges, indicating potential selling pressure and possible price corrections.
Spot Market Trends and Selling Pressure Signal Possible Downturn
Data from CryptoQuant analyst Onatt shows over 15,000 BTC moving into exchanges, typically linked to increased sell-off likelihood. Concurrently, Tether outflows suggest reduced liquidity in these exchanges.
Tether Outflows and Bitcoin Inflows Signal Short-Term Weakness
“Significant amounts of Tether (USDT) are exiting exchanges, and a large inflow of Bitcoin (BTC) (>15K) has been observed entering exchanges.” – By @tutunculeronat
Link
https://t.co/NFCLi7EpiI pic.twitter.com/6lUyTiEdNi
— CryptoQuant.com (@cryptoquant_com) December 24, 2024
Historically, such movements correlate with short-term price declines as traders adjust portfolios amid market volatility. However, Onatt indicated that there are no significant macroeconomic catalysts to drive a prolonged bearish trend following this potential correction.
This combination of factors may indicate a potential for further short-term downside in Bitcoin’s price. However, from a macroeconomic perspective, there doesn’t appear to be a catalyst that would necessitate a prolonged bearish trend after this short-term correction.
Key Indicators Suggest Mixed Signals in the Bitcoin Market
TraderOasis highlighted additional metrics affecting Bitcoin's price behavior. The Coinbase Premium Index did not follow Bitcoin's recent upward movement, suggesting weaker buying activity among US-based investors, often crucial for upward momentum.
As a result, the price retreated. We are now in negative territory. I expect a break in the market for the continuation of the rise.
Declining funding rates alongside rising open interest indicate that traders are opening more short positions, reflecting bearish sentiment in the derivatives market. This suggests expectations of continued downward trends or sideways movement.
The combination of declining funding rates and increasing open interest hints at a potential consolidation phase. TraderOasis noted:
I think the price will move sideways due to the Christmas week. Then the distribution movement will start.
Featured image created with DALL-E, Chart from TradingView