- Over 63,000 BTC were sent to exchanges in the last 72 hours, indicating potential selling pressure
- Bitcoin’s price action has been negative since the start of the week, breaking below its 200-day exponential moving average
- Concerns loom over the potential sale of 69,370 BTC confiscated from the Silk Road case, which could further depress Bitcoin’s price
The price of Bitcoin has declined this past week due to negative macroeconomic news. Over 63,000 BTC worth $1.8 billion have been transferred to exchanges since October 7, potentially signaling investors are preparing to sell.
Bitcoin Exchange Inflows Spike
According to data from CryptoQuant, approximately 28,000 BTC was sent to exchanges on October 7. An additional 23,500 BTC was transferred to exchanges on October 8, and about 12,000 coins were moved to exchanges on October 9. High exchange inflows often foreshadow selling pressure.
Bitcoin Slumps Below 200-Day Moving Average
Bitcoin started the week trading above $64,000 but fell below $62,000 by October 7. Bitcoin recorded losses the next three days and broke below its 200-day exponential moving average on October 10. The downward moves align with disappointing inflation and jobs data. Bitcoin must escape the $60,000 range to spark new interest according to Glassnode.
Potential Government Bitcoin Sales Loom
On October 7, the Supreme Court declined to hear a case regarding $4.3 billion in Bitcoin seized from Silk Road. This removes impediments for the government to sell the coins, which could further pressure Bitcoin prices. However, data shows the 69,370 BTC has not yet moved.
Conclusion
Bitcoin prices reacted negatively to macroeconomic news this past week. Ongoing high exchange inflows and the possibility of government sales present headwinds for further gains. However, Bitcoin has yet to break below the $60,000 support level.
