Declining Bitcoin Exchange Inflow Could Signal a Change of Trend, As Solana Faces Critical Levels

In the last few weeks, whales sold over 147,000 BTC, marking the fastest selloff rate in this bull cycle, fueling the massive Bitcoin decline. However, the declining exchange inflows over the last few days could suggest a potential change of trend.

Some analysts still predict that the Bitcoin price could drop further before recording a major recovery. Meanwhile, the Solana price has dropped to a critical support level at $200. How SOL reacts around this support zone will determine its short-term price action.

Bitcoin Exchange Inflow Declines, Will It Spark a Price Reversal?

Since mid-August, when Bitcoin hit its all-time high of $124,290, its price has been on a steady decline, dropping to as low as $107k in early September. With a lack of bullish momentum, the Bitcoin price has struggled around the $112,000 range recently.

CryptoQuant’s lead researcher, Julio Moreno, shared that the Bitcoin price decline coincides with the fastest monthly rate of whale balance decline of this bull cycle. He reported that more than 147K BTC have been sold by whales since August 21.

However, signs are emerging that suggest that this trend could be changing. CryptoQuant has now reported a decline in the Bitcoin inflows to exchange. The 7-day moving average for total Bitcoin inflows across all exchanges has been dropping, signaling a potential end to the selloff.

While this trend usually hints at a return of bullish momentum to the market, there are some analysts who still believe that the Bitcoin price could drop even further before the next major recovery. Ted Pillows and BitBull share similar sentiments, with the latter predicting that the Bitcoin price could drop to the $100k support before rallying to a new all-time high around $164,000. 

However, Kamran Asghar has predicted that if the Bitcoin price hold the $110K-$112k support, it could rally to new highs soon.

Solana (SOL) Drops To Critical Support Zone

In the recent market-wide decline, the price of Solana has fallen faster than the likes of Bitcoin and Ethereum. On the 7D price chart, Solana has plunged by more than 18%, causing the altcoin to fall to the critical support zone at $200.

Despite Solana reaching a major milestone in SOL treasuries, bears have continued to dominate the market. If the Solana price breaks below the $200 support, a major drop could follow, but many analysts are optimistic that this zone would hold strong. 

Trader Koala has called the drop to $200 a perfect retest of the weekly zone for Solana. The analyst expects this support to hold, which will be followed by some consolidation, then a rally to $320.

CryptoJelleNL shares a similar view, saying that as long as the Solana price holds above the consolidation area, it is due to rally to a new ATH. The analyst predicts that the Solana price could hit $400 if it holds its bullish structure. 

Conclusion

The declining Bitcoin exchange inflows provide a potentially bullish signal that selling pressure is easing and a trend change may be on the horizon. At the same time, Solana faces critical levels that will test the durability of its bullish outlook.