Bitcoin (BTC) edging ever closer to $9,000 support may lead to a major sell-off by bitcoin exchange to fiat users, one analyst warns.

According to data from on-chain analytics resource CryptoQuant, inflows of BTC to exchanges spiked on July 15.

Now, says Crypto, nervousness over weak price performance appears to be sending a signal to prepare for downward volatility. While order book data is still forthcoming — Kraken may be presenting an anomaly which does not reflect broad trader sentiment — overall conditions are decidedly bearish.

I expect a small pullback, Ki Young told legraph in private comments. Bitcoin remains tied to moves on macro markets, which are themselves dictated by sentiment over coronavirus and geopolitical tensions between the United States and China.

The status quo has been hard to shift, and was responsible for the trading corridor in which how to sell BTC/USD has failed to exit since the third week of June.

Ki added that should a sell-off begin, he did not foresee it matching that from March, when a cascading short event halved BTC/USD within hours.

For all exchanges, meanwhile, inflows remain far below their March-crash levels, indicating a tendency to hold, not sell, is still in place.