BitMEX’s Cash Inflow Yesterday Could Predict Further BTC Drop

BitMEX’s cash inflow from yesterday seems to be able to predict the next BTC Drop since the Bitcoin price finally made a move yesterday and lost more than $800 of its value at one point. This also came after a few days of consolidation so let’s see what the analysis shows us in the Bitcoin news today.

BitMEX, the most popular Bitcoin margin trading exchange recorded an inflow of about $28 million worth of BTC in the past 24 hours according to the monitor resource tokenanalyst. In general, over the past 7 days, BitMex saw an inflow of more than $92 million with an $89 million worth of outflows which means that the exchange is in the positive range. The surge in inflows coincides with the serious movement in the price of Bitcoin but this is not the first time that we see a correlation of this kind.

For example, just a month ago, Bitcoin’s price dropped from the $8,800 range to $8,300 in just a matter of hours and the popular crypto exchange noted another serious cash inflow of an additional $26 million. BitMEX’s cash inflow is now considered as a possible reason to make changes in the price of the leading cryptocurrency since just a week ago the BTC price went through a surge that we had not seen before 2011 when it increased more than 40 percent in a day and reached the $10,350 level. The retracement afterward took the price down to more than $9,300 where it traded sideways for some time.

Yesterday’s high was reached at about $9,270 and with a few violent hourly candles before it dropped to the lowest point of the day of $8,860 resulting in a 6.5% decrease. At the time of writing, Bitcoin’s price has risen slightly to the $8,800 level and if we take a look at the technical side, the price is set to recover but it will need to break the resistance level at $8,883. If it manages to move upwards, the next resistance level will be broken to the $9,100 range.

However, if the bearish trend is not done yet, the support level can be found at the 50-day moving average and the $8,600 region. Bitcoin’s total market capitalization dropped slightly under $160 billion and the dominance sits at 66.4 percent.