A Net Amount Of Bitcoin Exited Exchanges In The Past Week
As pointed out by a CryptoQuant , exchanges have seen BTC outflows for seven straight days in the last week.The relevant indicator here is the “all exchanges netflow.” This metric shows the net amount of Bitcoin entering or exiting wallets of all exchanges. Its value is calculated by taking the difference between the inflows and the outflows.
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Looks like the indicator has shown negative values recently | Source:As the above graph shows, today was the seventh day in a row that exchanges observed negative Bitcoin netflows. These outflows have varied from as low as 1500 BTC, all the way to 10450 on the other end.
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The indicator that measures the total supply on exchanges is called the “exchange reserve.” For quite a while now, the value of this metric has been gradually going down, and these recent outflows are just a continuation of that trend.This downtrend in the reserve may be creating a supply shock in the market, and due to supply-demand dynamics, such a situation can be bullish for the coin’s price.
BTC Price
At the time of writing, Bitcoin’s price floats around $57.2k, down 2% in the last seven days. Over the past thirty days, the crypto has lost 5% in value.
The below chart shows the trend in the price of BTC over the last five days.BTC's price beginning to show recovery? | Source:Bitcoin may have started on the path to recovery now as the price once again revisits above $57k. However, at the moment it’s unclear whether it’s a real recovery or a dead cat’s bounce.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com