Key Takeaways
What do the addresses depositing BTC signify?
The spike to 64k Active Addresses sending BTC to Binance on the 14th of October signified increased selling, but this number has begun to fall.
Is the short-term outlook bullish or bearish?
Based on the evidence at hand, the outlook remains bearish. There are clues of a bullish reversal, but traders need to wait a while before betting on a price recovery.
The number of Active Addresses sending Bitcoin [BTC] to Binance increased dramatically last week as BTC toppled from $121.5k to $102k within a day on Friday, the 10th of October.
Bitcoin inflows ease as volatility cools
According to CryptoQuant, between 54,300 and 57,780 unique addresses deposited BTC in the following days.
Source: CryptoQuant
In fact, in a post on CryptoQuant Insights, analyst Darkfost noted that the 14th of October saw 64,000 unique addresses deposit Bitcoin.
The last time such heavy inflows were seen was in July, when BTC crossed the $120k mark.
This spike in Exchange Inflows pointed to panic-driven selling and short-term capitulation, deepening volatility as BTC slid under $108K.
However, on the 18th of October, the number of Active Addresses depositing Bitcoin reduced to 30,850. This gradual drop showed reduced selling pressure and suggested that the market could be finding its new equilibrium.
