Bitcoin Exchange Inflows Spike Up To Highest Value Since July 2021
As pointed out by an analyst in a CryptoQuant , the BTC exchange inflows have observed a sharp increase recently.The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin moving into exchange wallets.
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On the other hand, low values of the indicator suggest that not much selling on exchanges is going on right now. This trend, when prolonged, can prove to be bearish for the value of the coin.Looks like the value of the metric has shot up recently | Source:As you can see in the above graph, the 7-day average value of the Bitcoin exchange inflow has observed a spike this week.
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Looking at the chart, it seems like in the last few months whenever the inflow has spiked up, the price has also declined with it.
This time as well it looks like the heavy selling on exchanges has played a part in the current plunge of Bitcoin below $33k. The metric’s value still looks to be rising, so it’s possible the coin may observe further decline in the near term, until the 7-day MA inflow tops out.BTC Price
At the time of writing, Bitcoin’s price floats around $32.9k, down 14% in the last seven days. Over the past month, the crypto has lost 22% in value.
The below chart shows the trend in the price of the coin over the last five days.The price of BTC seems to have plummeted down over the last few days | Source:Bitcoin’s seemingly endless consolidation looks to have finally broken down as the coin has observed some sharp downtrend in the past week. At the moment, it’s unclear whether the crypto is nearing a bottom or if more decline is coming. If the inflows continue to increase, then the latter scenario is more likely to play out.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com