On-chain data shows that bitcoin exchange flows from whales holding between 1 and 10k bitcoin have recently risen, a sign that could be bearish for the price of the cryptocurrency.
Bitcoin exchange inflows rise after rising above $24,000
As pointed out by CryptoQuant MailBTC whales ranging in size from 1k to 10k BTC seem to have sent a large stack to exchanges recently.
The “drainage flow“It is an indicator that measures the total amount of bitcoin that is transferred to the wallets of all central exchanges (spot and derivatives).
When the value of this metric goes up, it means that a large number of coins are deposited on the exchanges at the moment. Depending on how many of those are transferred to the spot exchanges, this trend can be bearish for the price of BTC as investors are usually sent to these exchanges for selling purposes.
On the other hand, lower values of the indicator indicate that there is little selling going on in the market at the moment. Therefore, this type of trend can be either neutral or bullish for the value of the coin.
Now, here is a chart showing the trend in Bitcoin for all exchange flows over the past few days:
The value of the metric seems to have spiked up recently | Source: CryptoQuant
As you can see in the chart above, all the Bitcoin exchange flows have recorded significant values over the past two days. The recent rally came shortly after the price of BTC surged above $24,000.
The graph actually shows a modified version of the indicator, called “Exhaust Output Value Ranges – Exchange Flow”, which tells us what is the contribution to the total inflows from each of the different volume holders in the market.
It seems that investors who own 1 to 10 thousand bitcoins have had a particularly big movement on the exchanges in the past two days. Owners belonging to this group are whalesso the current trend could indicate that whales may be planning to dump their litter now.
However, as mentioned earlier, the indicator takes into account the inflows of both spot and derivative exchanges. Much of the recent inflows went to derivatives exchanges, which suggests that whales may have been hedging against their spot positions.
However, a significant part of the total inflows went to the spot exchanges, so perhaps some selling is still going on in the market from these whales.
At the time of writing this report, Bitcoin price It is floating around $23.8K, up 2% in the past week.
Looks like the value of the crypto has come down during the past day | Source: BTCUSD on TradingView
Featured image from Thomas Bonometti on Unsplash.com, charts from TradingView.com, CryptoQuant.com