Hours before Bitcoin (BTC) fell below $113,000, a stash of 1,400 coins was moved to cryptocurrency exchanges, a signal commonly interpreted as a pre-sell move.
As seen in the following chart provided by CryptoQuant, 1,401 BTC accumulated by holders between 2 and 3 years old were withdrawn from their wallets to exchanges on Sunday, September 21.
BTC outflows from old holders' wallets were massive. Source: CryptoQuant.
For CryptoQuant analysts who identify themselves as "Darkfos," these movements led to Bitcoin price correction. "There's little doubt about that," he says.
The movement by these holders is not isolated. Since the beginning of September, Bitcoin holders between 6 and 12 months old have made several transfers to exchanges, amounting to between 8,000 and 9,000 BTC. The average is 8,500 coins per transaction.
Holder outflows between 6 months and 1 year average 8,500 BTC. Source: CryptoQuant.
At a reference price of $115,000, this behavior represents nearly $10 billion in selling pressure, Darkfos calculates, suggesting a significant trend preventing BTC from increasing in price.
This Monday, BTC is trading around $112,700, a 2.27% drop. This bearish performance has been reflected in the broader market, with record liquidations of long positions reaching $1.7 billion. This volume of liquidations demonstrates the magnitude of the impact that selling pressure has had on the derivatives market.
