On July 27, large volumes of Bitcoin returned to exchanges, indicating that “major volatility” might follow.

On-chain analytics firm Glassnode’s data indicate that intraday BTC exchange inflows have reached multi-month highs.

A trader warns of a “spike” in BTC price volatility

The price of BTC has remained below $30,000 for the foreseeable future, and traders have consistently expressed concern that further declines may follow.

The Whales, Bitcoin’s largest investor group, appear to be in a state of flux in an uncertain market at present.

Now that large chunks of coins have been moving in recent days, people are paying attention to businesses that send money to exchanges, which could lead to more selling pressure.

Over 10,000 BTC in inflows on a single day represented the largest one-day increase for several months, as noted by market observers, including James Straten, research and data analyst at crypto insights firm CryptoSlate.

“Recently, the most measure of Bitcoin returned onto trades since the SVB breakdown in Spring,” he remarked on July 28.

Straten referred to the fall of Silicon Valley Bank (SVB), which at the time ignited mass market vulnerability.

“Look out for a spike in unpredictability!” Along with data from the research company Santiment, the popular trader Ali continued on the subject.

“A large number of idle BTC has been exchanging hands over the past 24 hours, which coincides with a 10,000 BTC increase in supply on crypto exchanges.”

Glassnode demonstrates that the modifications brought the total BTC balance on the exchanges it monitors back up to 2.25 million.

Balances have been hovering around 2.25 million since March 2018, a multi-year low.

Bitcoin holder’s cost basis in focus

Straten went on to say that the cost basis of various holder cohorts continues to influence the price of BTC.

Related: The next bull run in Bitcoin? In 2023, the Bitfinex stablecoin ratio “blows up.” The cost basis of both short-term and long-term holders, which are already on Glassnode’s radar and other places, remains a critical support level.

The cost basis of Bitcoin long-term holders has decreased to $20,490. Since April 2022, this is the lowest cost basis. In conjunction with a summary chart, he wrote, “Realized price is now only $70 below.”

“Bitcoin Price in both the 2015 and 2019 bear markets used short-term holder realized price as support, 2023 is exactly the same, testing it three times so far $28,241.”

Bitcoin price long-term and short-term holder cost basis data. Source: James Straten/Twitter

Tags: Bitcoin
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