Bitcoin and Ethereum were both at the forefront of the market sell-off that resulted from the collapse of the earth’s treasuries. Since then, sellers have continued to dominate the market, and even with buyers making big moves, this market is still the seller’s market. The hope was that a reversal in this direction would occur at the start of the new week. But, Inward and outward flow directions She indicated that the selling may continue for a longer period.
Bitcoin and Ethereum Inflows Still High
On Monday, there were some encouraging setbacks in the prices of the major digital assets in the space. This included recovering $30,000 in Bitcoin, while Ethereum recovered back above $2,000. However, this will only exacerbate an already bad situation as sellers have increased inflows to the exchanges to make some gains.
What resulted was more than $1.1 billion in BTC flowing into exchanges in a single day. This showed a reversal from the previous day for net inflows which saw inflows outpace once again. Monday was much worse as the central exchanges saw net inflows of $67 million in a one-day period.
The same was the case for the second largest cryptocurrency by market capitalization, Ethereum, whose net flows were also positive, even exceeding those of Bitcoin. ETH saw a high exchange inflow of $589.4 million in a 24-hour period while its outflows reached $497.4 million. What this amounted to was a net outflow of $92 million. This indicates that there are more sellers in ETH than there are sellers in Bitcoin. As such, digital assets were expected to drop below $2,000.
BTC price declines below $30,000 | Source: BTCUSD on TradingView.com
Recovery on the horizon?
The directions of inward and outward flow have been alternating for some time now. This is evident in the last couple of days alone where net flows were negative one day and positive the next. Departing from this trend, it can be concluded that a reversal is very likely after the trading day on Tuesday.
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Instead, one of the things that has always come with lower prices has been investors looking for an opportunity to take advantage of lower prices. This always leads to more outflows as more investors accumulate tokens.
Another indicator that may indicate a reversal is the USDT inflow and outflow trends. USDT net inflow continues to be positive which is good for the market. It shows that investors are bringing more money to the central exchange so that they can buy and accumulate more tokens.
Featured image from CryptoSlate, chart from TradingView.com