The bitcoin (BTC) market looks to be shrugging off increased selling pressure from profit takers after prices surged this week.
- On Wednesday, bitcoin jumped over 7% to hit 15-month highs above $13,000 after payments giant PayPal (ticker: PYPL) announced support for cryptocurrencies.
- Cryptocurrency exchanges tracked by blockchain intelligence firm Chainalysis received a total of 106,519 BTC on Wednesday, the highest daily inflow since Oct. 2. A similar spike was observed on Sept. 4.
- That could be a concern for bulls, as flows to exchanges often precede sell-offs.
- "The pickup in exchange inflows indicates some investors rushed to liquidate their holdings (take profit) in the rising market," Philip Gradwell, chief economist at Chainalysis, told CoinDesk over WhatsApp.
- However, there's reason to believe that any higher levels of sales were absorbed Wednesday, as bitcoin's trade intensity (a measure of how many times an inflowing coin is traded) jumped to a two-month high of 5.8. That's more than double the 90-day average.