Huge Bitcoin Inflow To Gemini Behind The Drop To $38k?
July 30 2021 - 3:00PM
NEWSBTC
On-chain analysis shows that crypto exchange Gemini observed huge
Bitcoin inflows just before the plunge down to $38k. Huge Bitcoin
Inflows To Gemini As pointed out by a CryptoQuant post, crypto
exchange Gemini saw huge inflows earlier today resulting in a
positive spike in the netflows. Before examining the data, here are
some quick definitions for the relevant terms. The exchange inflow
is the amount of BTC sent from personal wallets to the exchange
platform. Similarly, the outflow is the BTC that was transferred
out of exchanges to personal wallets. The netflow is just the
difference between the value of the inflow and the outflow. When
the value of the netflow is positive, it means more BTC is entering
the exchange than exiting. Such a spike would mean that
investors want to sell off their Bitcoin, and thus there is a
selling pressure in the market. On the other hand, when this
indicator is negative, it implies a buying pressure in the market
as more BTC is traveling out of exchanges than in. Now, here is how
the Bitcoin netflow chart for the Gemini crypto exchange looks
like: The Gemini BTC netflow notices a huge positive spike |
Source: CryptoQuant As the above graph shows, Gemini has just
witnessed a spike in the Bitcoin netflow. Interestingly, BTC’s
price plunged down to $38k from just under $40k right after these
inflows. Related Reading | 8 Green Candles: Here’s What Happened
The Last Time In Bitcoin The chart also shows that the other big
positive netflows also seem to have been followed by drops in the
crypto’s price. This does make it seem like there is a correlation
between the netflows on Gemini and BTC’s price. BTC Price At the
time of writing, the Bitcoin price floats around $k, up % in the
last 7 days. The cryptocurrency’s gains for the month are around %.
Here is a chart that shows the trend in the price of BTC over the
last 24 hours: BTC witnesses a sharp fall from about $40k to $38k |
Source: TradingView After being range bound for quite the while,
Bitcoin finally saw some significant price movement as its price
touched $40k. The cryptocurrency has seen 9 up days, something the
coin hasn’t seen since 6 years ago. However, today it seems like
BTC has finally dropped a little so today won’t be a positive day.
As explained before, this plunge down to $38k is likely due to the
Gemini inflows. Related Reading | TA: Ethereum (ETH) Outpaces
Bitcoin, Why Bulls Aim Larger Increase In the past, there have been
similar instances where Gemini inflows caused sharp downtrends.
However, they don’t necessarily mean a drop will happen. It could
still be worth keeping an eye on the crypto exchange’s netflow for
any possible hints, nonetheless.
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