The biggest Bitcoin exchange inflows since 2018 threatened the potential $20,000 bottom

Bitcoin (BTC) could be on the verge of a major retail sell-off as exchange inflows surge to a near three-and-a-half-year high.

Data from on-chain analytics platform CryptoQuant shows that users from 21 major exchanges are sending coins to their wallets en masse on June 14.

Major exchanges close 83,000 BTC in a single day

As BTC/USD tumbled to lows of $20,800, traders appeared to be panicking and despite a trend reversal topping $23,000 at one point, few seemed willing to trust that the worst was over.

Since then, spot price action has returned to nearly $21,000 while 24-hour exchange inflows hit 59,376 BTC.

According to CryptoQuant data, this is the largest daily inflow since November 30, 2018. On the day, exchanges recorded 83,481 BTC net inflows.

May 9, 2022 ended with 29,082 BTC in net inflows for the platforms monitored by CryptoQuant.

Concern could therefore now turn to whether there will be more selling pressure in the Bitcoin markets in the coming days and weeks. Roughly a month after the 2018 inflow, BTC/USD hit its cycle bottom of $3,100, 84% below its previous all-time high of $20,000.

Bitcoin exchange netflow chart. Source: CryptoQuant

As Cointelegraph reported, analysts are divided on whether Bitcoin will repeat the trend this cycle. An 84% drawdown would mean a bottom of just $11,000.

In a separate analysis of the price situation, statistician Willy Woo concluded that macro market moves would dictate Bitcoin’s bottom.

“I think it’s easier than that, I think we’ll find a bottom when the macro markets stabilize,” reads part of a Twitter thread that considers various price support theories.

FTX, Binance see particularly strong selling

Analyzing who has been selling so far, CryptoQuant CEO Ki Young Ju pointed the finger at derivatives traders and the largest global exchange, Binance.

Related: ‘Too Early’ To Say Bitcoin Price Reclaimed Key Bear Market Support – Analysis

Ki noted that most of the coin days destroyed – still coins that became active after a period of dormancy – came from these specific locations.

“This selling pressure came from Binance and FTX,” he wrote in a June 13 Twitter thread.

“$BTC Exchange Inflow CDD (Coins Days Destroyed) indicates ancient whale deposits. Binance’s inflow CDD hit a yearly high before the decline.”Bitcoin Coin Days destroyed for Binance, FTX (screenshot). Source: Ki Young Ju/ Twitter

Ki added that this contrasts with other whales, which have been comparatively calm during the price surge that began with Terra LUNA’s implosion in May.

Meanwhile, data from on-chain analytics resource Coinglass shows the extent of the downtrend in FTX, particularly over the past few days.

Bitcoin funding rates for Binance, FTX. Source: coin jar

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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