The data on the chain shows that Bitcoin’s net flows remain deeply negative, which is a sign that BTC is bullish. This is despite the drop in $ 44,000
Exchanges see a deeply negative Bitcoin net Flow
According to CryptoQuant PublishThe Bitcoin net flow indicator recently turned out to be very negative, which suggests that the signs are still broadly positive for the market.
Two other indicators are related the net flow, the outgoing and the inflow. The first refers to the total amount of BTC being sent from exchanges into personal wallets.
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This metric is more valuable, which means that investors are more interested in OTC sales and purchases.
The influx indicator measures the amount of Bitcoin that moves from individual wallets to central exchanges. It is a sign that more investors want to trade altcoins and sell their coins when the value goes up.
The net flow can be calculated by subtracting outgoing flow from the incoming flow. If this indicator is negative, it means that there are more outputs then inputs. This could indicate that there is excessive buying pressure on the market.
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On the other side, a positive value means that the inputs exceed the outputs. A positive value could indicate that there is market buying pressure.
Here’s how the chart of all BTC trades looks after using a 30-day moving average to smooth it.
Source:| Source: CryptoQuant
Looking at the chart above, it looks like Bitcoin has started to catch a negative trend in the net flow, with values deepening more recently.
The chart also shows interesting correlations with coin price over the past one year. The net flows before the bull market began were very negative. After the crash, the curve became very positive.
Considering the trends above, this could mean that decently negative values like right now could be bullish for the price.
The price of Bitcoin is currently at $ 45.5,000 as of this writing. This is an increase of 3% over the previous 7 days. The cryptocurrency has seen 53% growth in the last month.
Below is a chart which shows the Bitcoin price trends for the past three months.
Source: BTCUSD| Source: BTCUSD on TradingView
Bitcoin’s value appears to be falling after stagnating at $ 47,000 It is unknown how long this trend may last. If one relies only on netflows, the signs remain bullish for cryptocurrency.
Featured image from Unsplash.com. Charts by CryptoQuant.com, TradingView.com.