Increase in Bitcoin Inflow to Exchanges Suggests Potential Drop in BTC Price to $63,000

Although whale transactions are creating a buzz, the Bitcoin (BTC) price continues to wobble around the $66,000 mark, facing relentless bearish momentum. Recent insights from CryptoQuant reveal a spike in Bitcoin deposits to exchanges aligning with an uptick in Bitcoin disposals.

Effects of Increased Bitcoin Spending on BTC Value

CryptoQuant data indicates rising spending from Bitcoin holders, particularly within the 1M-3M, 3M-6M, and 6M-12M age brackets of wallet assets. Over the last weekend, wallets in the 3M-6M range contributed nearly 40% of all Bitcoin transferred to exchanges, with the 6M-12M bracket accounting for 20%, and the rest coming from various other sources.

With more Bitcoin being moved to exchanges, the market might experience heightened sell-off pressure. Analysts theorize that this sell-off could initially cause a bump in BTC price only to be followed by a sharp decline that potentially plummets the market.

Potential Dip to $63,000 for Bitcoin?

Renowned cryptocurrency analyst Michael van de Poppe has observed that BTC prices are trapped in a stalemate between $57K and $73K and anticipates a drop early this week. However, he contends that a support level between $63K and $64.5K should hold strong.

#Bitcoin remains stuck between $57K-73K and I expect it to continue falling in the first part of the week.

My personal area of support is between $63-64.5K. That area should hold to me. pic.twitter.com/JZkeiWzJyv

— Michaël van de Poppe (@CryptoMichNL) June 17, 2024

With a bullish divergence solidifying, BTC strives to uphold a price over $66,300. It is critical at this junction for bullish investors to assert their position and defend this price range. The lateral trend of Bitcoin has caused a restlessness among investors, yet an unexpected favorable shift is still possible.

Crypto market analyst Ali Martinez has spotlighted a significant potential for liquidations on Binance should Bitcoin hit $67,450, estimating a whopping $19.50 million in positions at stake. This instance demonstrates the intense volatility and complicates risk strategies in cryptocurrency trading when prices escalate.

Roughly $19.50 million will be liquidated in @binance alone if #Bitcoin surges to $67,450! pic.twitter.com/zb0t5aynvw

— Ali (@ali_charts) June 17, 2024