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Bitcoin Bullish Signal: Whale Exchange Inflows Remain Down

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On-chain data shows that bitcoin whale exchange flows have remained low after hitting a local peak some time ago, which could prove to be a bullish sign for the price of the cryptocurrency.

Bitcoin whales are not sending many coins to exchanges right now

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As a CryptoQuant analyst points out mailBTC inflows recently peaked and have remained low ever since, a signal that there could be a bottom for the coin.

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“Inflow of all exchanges” is a metric that measures the total amount of bitcoins transferred to the wallets of all centralized exchanges.

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When the value of this indicator is increased, it means that a large number of deposits are being made on the exchanges right now. Since investors usually send their coins to exchanges for the purpose of selling, such indicator values ​​can be bearish for the price of BTC.

On the other hand, low inflow figures suggest that there may be a significant amount of selling going on in the market right now. Depending on whether the outflows increased (the opposite indicator) or not, such a trend can be either bullish or neutral for the value of the cryptocurrency.

Now here is a chart showing the trend of bitcoin inflows across all exchanges over the past few years:

Influx of whales to the 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, the influx of bitcoin exchange peaked some time ago, after which the cryptocurrency fell below $18k.

The chart also includes data for two other metrics: “Top 10 Whale Inflows” and a 7-day average of total inflows.

The first metric gives the sum of the ten largest deposits coming to the exchanges. These transfers are usually assumed to come from whales, so this indicator gives us insight into the current selling behavior of these huge holders.

It appears that both whale inflows and the 7-day average total inflow in recent weeks have shown a similar pattern.

Historically, a spike in inflows followed by low readings has been a sign of a bottom forming for a cryptocurrency.

Since the whales as well as other investors are not putting too much pressure on the market right now, it is possible that Bitcoin could see a bullish outcome in the near future.

Bitcoin Price

At the time of writing, the price of Bitcoin is hovering around $23.2k, down 5% from 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



Credit : www.newsbtc.com

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