Bitcoin Bullish Signal: Whale Exchange Inflows Remain Down
August 06 2022 - 3:00PM
NEWSBTC
On-chain data shows the Bitcoin whale exchange inflows have
remained down after hitting a local peak a while back, a sign that
could prove to be bullish for the price of the crypto. Bitcoin
Whales Aren’t Sending Many Coins To Exchanges Right Now As pointed
out by an analyst in a CryptoQuant post, the BTC inflows made a
peak recently and have remained down since, a signal that the
bottom may be in for the coin. The “all exchanges inflow” is an
indicator that measures the total amount of Bitcoin being
transferred to wallets of all centralized exchanges. When the value
of this metric is elevated, it means a large number of deposits are
being made on exchanges right now. Since investors usually send
their coins to exchanges for selling purposes, such values of the
indicator can be bearish for the price of BTC. Related Reading:
This On-Chain Indicator Suggests Bitcoin Still Only 1/3rd Into Bear
Market On the other hand, low inflow values suggest a healthy
amount of selling may be going on in the market right now.
Depending on whether the outflows (the opposite metric) are raised
or not, this kind of trend can be either bullish or neutral for the
value of the crypto. Now, here is a chart that shows the trend in
the Bitcoin all exchanges inflows over the last few years: The
value of the metric seems to have been low in recent days | Source:
CryptoQuant As you can see in the above graph, the Bitcoin exchange
inflows hit a peak a while back, following which the crypto sunk
down below $18k. The chart also includes the data for two other
indicators, the “top 10 whale inflows” and the 7-day average of the
total inflows. The former metric gives the sum of the ten largest
deposits going to exchanges. These transfers are generally assumed
to be from whales, so that this indicator gives us an idea about
the current selling behavior of these humongous holders. Related
Reading: Low Caps Like Uniglo (GLO) And Convex Finance (CVX) Likely
To Make New Millionaires Alongside Bitcoin (BTC) It looks like both
the whale inflows and the 7-day mean total inflows have made a
similar pattern in recent weeks. Historically, the trend of a sharp
inflow spike followed by low values has been a sign of bottom
formations for the crypto. As whales, and other investors as well,
aren’t putting too much selling pressure on the market right now,
it’s possible that Bitcoin may see a bullish outcome in the coming
future. BTC Price At the time of writing, Bitcoin’s price floats
around $23.2k, down 5% in the past week. Looks like the value of
the crypto has been consolidating sideways recently | Source:
CryptoQuant Featured image from Sandra Seitamaa on Unsplash.com,
charts from TradingView.com, CryptoQuant.com
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