The price of Bitcoin has been largely quiet since reaching its current all-time high around the $123,000 level. Over the past week, the premier cryptocurrency mostly danced between the $117,000 – $120,000 range, struggling to hold sustainably above $119,000 during this period.
However, the Bitcoin price drifted out of its comfort zone to close the week, falling to a new weekly low just above the $115,000 mark on Friday, July 25. The latest on-chain data has offered insight into the major driver behind the market leader’s latest correction.
Is BTC At Risk As Large Players Take Profit?
In a Quicktake post on the CryptoQuant platform, pseudonymous analyst Caueconomy revealed that cryptocurrency exchanges saw increased activity over the past day. Recent on-chain revelation shows that 40,000 BTC made their way onto these centralized platforms on Friday.
This on-chain observation is based on the Bitcoin Exchange Inflow – Spent Output Value Bands, which tracks the amount of Bitcoin spent outputs flowing into centralized exchanges at a given time. This metric offers insight into the different investor cohorts contributing the most to the exchange inflows.
Source: CryptoQuant
As shown in the chart above, this metric has witnessed significant spikes in the past day — which comes as no surprise. As reported earlier on Friday, Galaxy Digital moved 32,448 BTC (worth over $3.7 billion), with a significant portion (22,700 BTC) going to exchanges.
Caueconomy highlighted that the massive coin movements seen on Friday are connected to some profit-taking by large players in the market. “OTC desks have also been attacking these platforms’ order books,” the on-chain analyst added.
One of the services known to be offered by centralized exchanges is the buying and selling of cryptocurrencies. Hence, the increased flow of cryptocurrencies (Bitcoin, in this scenario) is often correlated to increased selling pressure, as coins are often sent to exchanges to be dumped in the open market.
Caueconomy, however, noted that it’s not all gloom for the flagship cryptocurrency yet, as the price of Bitcoin is still well above the $110,000 level. Ultimately, this trend suggests that the net buying interest is still the dominant force in the market in the medium term.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $117,346, reflecting an over 0.2% decline in the past 24 hours. According to data from CoinGecko, the market leader is down by nearly 1% in the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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