Is Bitcoin Rise Above $20k Sustainable? Here’s What On-Chain Data Says
October 26 2022 - 3:00PM
NEWSBTC
Bitcoin is now back above the $20k mark after observing some sharp
uptrend over the past day, but is this pump sustainable? Here’s
what on-chain data has to say about it. Bitcoin All Exchanges
Netflows Remain Muted Following The Price Rise As explained by an
analyst in a CryptoQuant post, the BTC exchange netflows can help
us know whether this short-term uptrend is sustainable or not. The
“all exchanges netflow” is an indicator that measures the net
amount of Bitcoin entering or exiting wallets of all centralized
exchanges. The metric’s value is simply calculated by taking the
difference between the inflows and the outflows. When the indicator
has a positive value, it means investors are depositing a net
number of coins to exchanges right now. Since these holders may be
sending the BTC to exchanges for selling purposes, this kind of
trend could have bearish implications on the price of the crypto.
Related Reading: This Bitcoin On-chain Retest Can Change Market’s
Course, Here’s How On the other hand, negative values of the
netflow imply the outflows are currently overwhelming the inflows.
Such a trend, when prolonged, can be bullish for the coin as it may
be a sign of accumulation from holders. Now, here is a chart that
shows the trend in the Bitcoin all exchanges netflow over the last
couple of weeks: Looks like the value of the metric saw a spike
about a week ago| Source: CryptoQuant As you can see in the above
graph, only the positive scale of the Bitcoin exchange netflow is
displayed, as it’s a sufficient enough metric in the context of the
current price discussion. It seems like there have been no
significant spikes in the value of the indicator since the crypto
has observed the pump. This means that whales haven’t deposited any
coins for dumping yet. Related Reading: Bitcoin (BTC) and Shiba Inu
(SHIB) Investors Sell And Buy The Hideaways (HDWY) Just a week or
so back, there was a pretty large positive netflow spike, shortly
after which BTC returned back from its small rise. For now, Bitcoin
hasn’t seen any such inflows, which would suggest the rise could
continue in the short term. However, it remains to be seen how long
the whales will keep sitting still. BTC Price At the time of
writing, Bitcoin’s price floats around $20.5k, up 7% in the last
seven days. Over the past month, the crypto has gained 9% in value.
The below chart shows the trend in the price of the coin over the
last five days. The value of the crypto seems to have sharply risen
up over the past 24 hours | Source: BTCUSD on TradingView Featured
image from Jievani Weerasinghe on Unsplash.com, charts from
TradingView.com, CryptoQuant.com
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Aug 2024 to Sep 2024
SHIBA INU (COIN:SHIBUSD)
Historical Stock Chart
From Sep 2023 to Sep 2024