Whale exchange inflows keep down - India Blogger

On-chain data shows that bitcoin whale exchange flows remain down after reaching a local peak sometime back, a sign that could prove bullish for the crypto’s price.

Bitcoin Whales Aren’t Sending Many Coins To Exchanges Right Now

As pointed out by an analyst in a Cryptoquant post, BTC inflows recently made a peak and have remained below since then, a sign that a bottom may be in store for the coin.

The “flow to all exchanges” is an indicator that measures the total amount of bitcoins being transferred to the wallets of all centralized exchanges.

When the value of this metric is high, it means that there are a large number of deposits being made on the exchanges right now. Since investors usually send their coins to exchanges for the purpose of selling, such values ​​of the indicator can be bearish for the price of BTC.

On the other hand, low inflow prices suggest that there is a good amount of selling going on in the market right now. Depending on whether the outflow (contrast metric) has increased or not, such a trend can be either bullish or neutral for the value of the crypto.

Now, here is a chart that shows the flow of all bitcoin exchanges over the years:

The value of the metric seems to have been low in recent days | Source: CryptoQuant

As you can see in the graph above, bitcoin exchange inflows reached their peak sometime back, after which the cryptocurrency fell below $18k.

The chart also includes data for two other indicators, “Top 10 Whale Flows” and a 7-day average of total flows.

The former metric sums up the ten largest deposits going to exchanges. These transfers are generally assumed to be from whales, so this indicator gives us an idea of ​​the current selling behavior of these humble holders.

Both whale inflows and 7-day average total inflows appear to have formed a similar pattern in recent weeks.

Historically, the trend of a sharp inflow spike followed by lower prices has been a sign of a bottom formation for the crypto.

As even whales and other investors are not putting too much selling pressure on the market right now, it is possible that Bitcoin could see bullish results in the foreseeable future.

btc price

At the time of writing, the price of bitcoin is floating around $23.2k, down 5% over the past week.

bitcoin price chart

Looks like the value of the crypto has been consolidating sideways recently | Source: CryptoQuant
Featured image from Sandra Seitamaa on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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