Bitcoin Spot Entry Hits Highest Since Black Thursday

Bitcoin recovered from the upper end of the $20,000 price zone. At the time of writing, BTC is trading at $32,475 with increased volatility in recent days. BTC bounced off the previous support on the daily chart. Source: BTCUSD Tradingview The bulls struggled in May and June as bears took over the price action, increasing selling pressure across all exchange platforms. As Bitcoin received critical support at $29,000, CryptoQuant recorded an increase in BTC inflows to the exchange. As seen in the image below, the last time the exchanges hit this much BTC was March 2020, when the BTC price dropped to just under $4,000 on “Black Thursday”. Source: CryptoQuant Additionally, CryptoQuant posted a moving 7-day net flow average that turned positive on the spot exchange. The last time this statistic was at similar levels, Bitcoin had a distribution in the $50,000 range. Source: CryptoQuant Many traders have questioned the validity of the amount of BTC inflows to be exchanged as a relevant metric to predict a rate in price action. Some believe that by sending BTC to these platforms, whales can easily manipulate the market and capitalize on the fear experienced by investors. But CryptoQuant CEO Ki-Young Ju believes such "psychos are nearly impossible." The platform uses a mechanism to measure exchange flow data based on the number of transactions. For example, they calculate their data by looking at batch streams, not a single transaction. That's why we need to see batch streams instead of a single action like Whale Alert. Any process can be easily manipulated by whales. Whales need to send over 10,000 BTC to screw up our data, but most of the big TX's are internal exchange transfers. Young Ju added that the only way these data could be wrong is if the whales coordinate their processes. This way, exchanges will receive tens of thousands of BTC entries and "data will be ruined". Young Ju added: (…) but not h

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