The current perception of the Bitcoin market indicates a possible short-term correction, despite overall positive trends. Key factors include the rise in Bitcoin reserves on exchanges and changes in investor sentiment.
Bitcoin Reserves on Exchanges
According to an analysis conducted on July 20 by CryptoQuant contributor ShayanMarkets, Bitcoin reserves on centralized exchanges have reached their highest level since June 25. This increase in exchange balances indicates ongoing profit-taking by investors, increasing the supply of BTC that may potentially be sold.
Inflows and Volumes
In this context, there has been a significant increase in BTC inflows to exchanges, which also supports a cautious outlook. According to Darkfost, another CryptoQuant contributor, the inflow from whales into exchanges increased by nearly $17 billion during the period from July 14 to July 18. Similar trends were observed in the past when monthly whale inflows exceeded $75 billion, often leading to more significant corrections.
Technical Analysis and Predictions
Currently, CryptoQuant’s Bitcoin Bull Score Index is at 80, indicating a very bullish phase. However, high optimism poses a risk of overheating, which in the past has led to increased volatility. At the time of writing, Bitcoin was trading at $118,307, up 0.4% over the past 24 hours after retreating from a record high of $122,838 set on July 22. If the price closes below the 20-day SMA, a further decline toward the $105,000 level may occur.
The current situation in the Bitcoin market shows signs of a short-term correction related to rising reserves on exchanges and potential changes in investor sentiment. Monitoring volumes and technical indicators will be crucial for understanding further market movements.
