Whale Exchange Inflows Remain Down

On-chain data shows that bitcoin whale exchange flows remained low after hitting a local peak some time ago, a potentially bullish sign for the cryptocurrency’s price.

Bitcoin whales are not sending many coins to exchange right now

As pointed out by an analyst at CryptoQuant MailBitcoin inflows peaked recently and have remained low ever since, a sign that bottoms may be in the direction of the coin.

The “The flow of all exchanges“It is an indicator that measures the total amount of bitcoin that is transferred to the wallets of all central exchanges.

When the value of this metric goes up, it means that a large number of deposits are being made on the exchanges at the moment. Since investors usually send their coins to exchanges for selling purposes, these index values ​​may be bearish relative to the bitcoin price.

On the other hand, low inflow values ​​indicate that a significant amount of selling is likely in the market at the moment. Depending on whether or not the outflows (counter metric) are high, this type of trend can be either bullish or neutral for the value of the cryptocurrency.

Now, here is a chart showing the trend in Bitcoin for all exchange flows over the past few years:

Whale Flows in Bitcoin Exchange

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

As you can see in the chart above, bitcoin exchange flows peaked a while ago, after which the crypto dropped below $18,000.

The chart also includes data for two other indicators, “Top 10 whale flowsAnd an average of 7 days for total inflows.

The previous measure gives the sum of the ten largest deposits that go to exchanges. These transfers are generally assumed to be whales, so this indicator gives us an idea of ​​the current selling behavior of these giant owners.

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

Historically, a sharp uptrend in the flow followed by lower values ​​has been a sign of the cryptocurrency’s lower formation.

With whales and other investors not putting much selling pressure on the market at the moment, Bitcoin is likely to see a bullish result in the near future.

BTC price

At the time of writing this report, Bitcoin price It is floating around $23.2K, down 5% in the last 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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