BTCUSD Bitcoin

The trend in an on-chain indicator could suggest that the Bitcoin bull market is still on even after the latest volatile action in the asset’s price. Bitcoin Coinbase Flow Pulse Is Still Signaling A Bull Market In a new post on X, CryptoQuant author Axel Adler Jr has talked about the latest trend in the Coinbase Flow Pulse for Bitcoin. The “Coinbase Flow Pulse” here refers to an on-chain indicator that keeps track of the net amount of BTC that’s moving between Coinbase and other exchanges. When the value of this metric is positive, it means coins are flowing from wallets associated with other exchanges to those connected to Coinbase. On the other hand, the indicator being under zero implies Coinbase is going through outflows. Related Reading: Ethereum Could Crash To $1,700 If This Support Fails, Analyst Says Now, here is the chart for the Bitcoin Coinbase Flow Pulse shared by the analyst that shows the trend in its 30-day and 90-day simple moving averages (SMAs) over the last few years: As displayed in the above graph, the 30-day SMA of the Bitcoin Coinbase Flow Pulse surged above the 90-day a few months back and has since maintained its steep climb, creating distance between the two lines. Historically, this type of crossover has signaled a shift toward a bull market phase for Bitcoin. Clearly, BTC hasn’t seen the reverse type of crossover yet, so this signal could still be considered active. The 30-day MA crossing above the 90-day MA implies that inflows into Coinbase are gaining momentum. The reason this acts as a bullish signal for BTC is that the platform is primarily used by institutional entities based in the US. Whenever coins are flowing into Coinbase, it’s a sign that these American traders are interested in the cryptocurrency. As the analyst explains, Currently, a bullish phase prevails, driven by strong institutional interest. The absence of significant red zones indicates no large-scale outflows typically seen in a bear market when capital shifts from the spot market to futures. While a transfer of wealth from other exchanges to Coinbase is a positive sign for Bitcoin, exchange inflows that occur from self-custodial wallets can be a bearish sign instead. Fortunately, BTC doesn’t have to worry about this for now as the BTC Exchange Reserve, a metric that measures the total amount of the asset sitting on centralized exchanges, has plunged. Related Reading: Chainlink Witnesses Highest Whale Activity Since 2023, Price Reversal Coming? Here is a chart shared by an analyst in a CryptoQuant Quicktake post that shows the latest trend in the indicator: BTC Price Bitcoin had kicked the week off with some recovery to the $102,000 level, but the asset has since erased most of its gains as it’s now trading around $96,700. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com