On-chain data shows that bitcoin offshore flows have been on the rise recently, a potentially bullish sign for the cryptocurrency’s price.
Bitcoin exchange Netflow has noticed deep red values in recent days
As pointed out by an analyst at CryptoQuant MailRecently, investors have withdrawn more than 60,000 bitcoins from exchanges.
The relevant pointer here is “All netflow exchanges“which measures the net amount of bitcoin entering or leaving the wallets of all central exchanges. The value of the metric is calculated simply by taking the difference between streams and flows.
When the value of this indicator is greater than zero, it means that there are more inflows occurring in the market than outflows. Such a trend, when it lasts for a long time, can be bearish for the price of the cryptocurrency because it could be a sign of investors being overwhelmed.
On the other hand, negative net flow values indicate that investors are taking a net number of coins at the moment. This type of trend could indicate buying pressure in the market, and therefore could be bullish for the value of Bitcoin.
Now, here’s a chart showing the trend in the net flow of all Bitcoin exchanges over the past month:
The value of the metric seems to have been below zero in recent days | Source: CryptoQuant
As you can see in the chart above, netflow of all Bitcoin exchanges has noticed some negative spikes over the past three days.
These bearish rises in the value of the index amounted to more than 61,000 bitcoins leaving exchange wallets, the largest group of withdrawals in months.
The price of the cryptocurrency has been struggling hard for several months now, so this kind of new demand could be building on the coin, and helping it turn things around, at least temporarily.
At the time of writing this report, Bitcoin price It is floating around $19.1k, up 1% in the past seven days. Over the past month, the cryptocurrency has lost 5% of its value.
Below is a chart showing the trend in the currency price over the past five days.
Looks like the value of the crypto has been mostly trending sideways during the last few days | Source: BTCUSD on TradingView
Bitcoin hasn’t seen a lot of price activity at all lately because the value of the cryptocurrency has been drawing a flat curve. One of the exceptions was the rally to $20K two days ago, but it wasn’t long before the rally faded away and BTC reverted to a consolidation trend.
Featured image from Dylan Leagh on unsplash.com, charts from TradingView.com, CryptoQuant.com