On-chain Bitcoin data shows that exchanges this week saw the largest inflows since July 2021, pushing the cryptocurrency’s price up to $33,000.
Bitcoin exchange inflows surge to highest value since July 2021
As pointed out by an analyst at CryptoQuant mailRecently, Bitcoin (BTC) exchange flows have noticed a sharp increase.
The “The flow of all exchanges“It is an indicator that measures the total amount of bitcoin that goes to exchange wallets.
When the value of this metric goes up, it means that more and more coins are turning to exchanges. This trend may be bearish for the price of the cryptocurrency as investors usually deposit BTC on exchanges for selling purposes.
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On the other hand, low values of the indicator indicate that there is not much selling on the exchanges at the moment. This trend, when it continues for a long time, could prove bearish for the value of the coin.
Now, here’s a chart showing the trend in bitcoin exchange flows over the past several months:
Looks like the value of the metric has shot up recently | Source: CryptoQuant
As you can see in the chart above, the 7-day average value of bitcoin exchange flow has seen a sharp rise this week.
The index’s current value is the highest since July of last year, when the coin bottomed at $29,000.
Looking at the graph, it seems that in the past few months whenever the flow has occurred soared aboveAnd the price went down with it, too.
This time too, it appears that the massive selling on the exchanges has played a role in the current drop of Bitcoin below $33,000.
The value of the scale is still rising, so the currency is likely to notice further declines in the near term, until the inflow of the 7-day moving average reaches the top.
At the time of writing this report, Bitcoin price It is floating around $32.9K, down 14% in the past seven days. Over the past month, the cryptocurrency has lost 22% of its value.
The chart below shows the currency price trend over the past five days.
The price of BTC seems to have plummeted down over the last few days | Source: BTCUSD on TradingView
The seemingly endless Bitcoin consolidation has finally collapsed as the coin noticed some sharp downside in the past week.
At the moment, it is unclear whether the crypto is approaching the bottom or if more downturns are to come. If inflows continue to increase, the latter scenario is likely to continue.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com