Bitcoins surge above $70k sparked exchange inflows

Bitcoin dropping below $60,000 at the beginning of May spooked the market and led to significant volatility across trading products. However, despite the massive volatility in derivatives, the spot market seems to have led most of this recovery, with volumes and inflows helping stabilize BTC at around $66,000 in mid-May. After a choppy few days […]

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Is a Bitcoin Rally Coming? Exchange Net Flow Data Suggests So

According to a CryptoQuant Quicktake post published earlier today, Bitcoin (BTC) may be on the verge of a significant price rally. Since February 6, net flow across crypto exchanges has remained negative – a historically bullish signal for the digital asset. Bitcoin To Benefit From Negative Exchange Net Flow The past 24 hours have been highly volatile for the crypto market, with liquidations exceeding $360 million, the majority involving long positions. However, despite this market pullback, on-chain data remains bullish, suggesting that concerns may be overstated. Related Reading: Bitcoin Could Hit $112,000, But Only If It Holds Above This Key Level Analyst Explains In a Quicktake post shared today, CryptoQuant analyst ibrahimcosar highlighted Bitcoins exchange flows. He noted that since February 6, BTC has experienced a persistent negative net flow across trading platforms. To explain, when a large quantity of BTC is withdrawn from exchanges, it often indicates that investors – likely those who bought at lower prices – are expecting a price rally. These investors move their holdings to cold wallets, anticipating long-term gains and paying network fees to secure their assets. Over time, this behavior results in a negative net flow of BTC across exchanges, a bullish indicator. Conversely, when a significant amount of BTC is deposited onto exchanges, it increases selling pressure, often signalling a bearish trend. Extended periods of high crypto deposits lead to positive net flows, typically preceding price declines. The analyst stated that recent data – from February 6 onwards – suggests that a large amount of BTC is being withdrawn from crypto exchanges. The analyst added: Historically, such high outflows have led to significant price increases in Bitcoin. This suggests that market volatility to the upside could be on the horizon. Ibrahimcosars insights align with a recent analysis from CryptoQuant analyst ShayanBTC, who noted that BTC reserves on exchanges are rapidly decreasing. A sustained decline in exchange reserves could set the stage for a supply shock-driven price rally, reversing Bitcoins recent downtrend. Momentum, Macroeconomic Factors Point Toward Bullish Trend Beyond on-chain metrics, technical indicators like the Relative Strength Index (RSI) have also turned bullish. A recent analysis by Rekt Capital highlighted that BTCs daily RSI has broken its multi-month downtrend, suggesting that a price rally may be imminent. Related Reading: Bitcoin Posts Modest Gains After February CPI Inflation Comes In Cooler Than Expected Additionally, macroeconomic factors appear to be fueling optimism. Reports suggest that US President Donald Trump may reconsider upcoming reciprocal tariffs set to take effect on April 2, potentially easing market concerns. Meanwhile, Bitcoin whales – wallets with substantial BTC holdings – have resumed accumulation after a brief period of dormancy, further reinforcing a bullish sentiment. At press time, BTC trades at $85,071, down 2.1% in the past 24 hours. Featured image created with Unsplash, charts from CryptoQuant and TradingView.com

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Bitcoin Interexchange Flow Pulse About To Reverse, What Does It Mean?

On-chain data shows the Bitcoin Interexchange Flow Pulse is about to see a trend reversal, here’s what it may mean for the crypto’s price. Bitcoin Interexchange Flow Pulse Is Crossing Over Its 90-Day MA As per CryptoQuant’s on-chain year-end dashboard release, the trend shifts in this metric have historically occurred with phase changes in the market. The “Interexchange Flow Pulse” is an indicator that measures the 1-year cumulative net flows between Coinbase and derivative exchanges. When the value of this metric rises, it means investors are transferring more coins from spot to derivative exchanges right now, and are hence willing to take up more risk. On the other hand, low values suggest not much capital is flowing into the derivative exchanges at the moment. Now, here is a chart that shows the trend in the Bitcoin Interexchange Flow Pulse, as well as its 90-day moving average (MA), over the last few years: Looks like the value of the metric may be beginning to turn around | Source: CryptoQuant As you can see in the above graph, a pattern seems to have historically followed with the Bitcoin Interexchange Flow Pulse during bull-bear trends in the price of the crypto. Whenever the coin has observed a bullish period, the indicator has seen a constant climb and has stayed above its 90-day MA. Related Reading: Litecoin Bullish Signal: Shark And Whale Addresses Hit 2-Year High The reason behind this is that investors are generally willing to take more risk during bull markets, and hence send increasingly large amounts to derivative exchanges for setting up leverage positions. However, whenever the metric has reversed its direction and crossed below the 90-day MA, a top formation has taken place in the price of BTC, and the bullish trend has ended. In the bear markets that have followed such periods, the Interexchange Flow Pulse has usually continued to go down and has remained below its 3-month average. Once again, why this happens is simple; bear markets are when the average holder is unwilling to take any risks, and hence capital flow into derivatives dries up. This trend in the indicator continues until the turning point once again takes place, where the price forms its bottom and the metric starts moving back up the opposite way (crossing above its 90-day MA in the process). Related Reading: Bitcoin Might Be Going Through Its “Most Challenging” Cycle Based On This Metric In the current bear market as well, the Bitcoin Interexchange Flow Pulse has consistently moved down while staying under its 90-day MA. Most recently, however, the decline seems to have stopped, and now the indicator is retesting its long-term average. If the historical pattern is anything to go by, a successful crossover and reversal in the Interexchange Flow Pulse’s trajectory here would mean the bear bottom is in for the current cycle, and a slow transition towards a bull market could follow. BTC Price At the time of writing, Bitcoin’s price floats around $16,600, down 1% in the last week. The value of the crypto seems to have declined over the last couple of days | Source: BTCUSD on TradingView Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Long-term Bitcoin bulls hodl strong despite five-month price high

Bitcoin wallets that haven't seen outflows for more five months and are currently sitting on $754 billion worth of the asset.

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Bitcoin Remains Bearish Despite Negative Exchange Flow All Week

There is an abundance of exciting metrics regarding cryptocurrencies.  The overall exchange flow for Bitcoin has been mainly negative, even though fewer people hold 100 BTC or more. Additionally, it seems USDC’s netflow is going negative, too, indicating the bear market may not be over just yet.  Where Is Bitcoin Going? The recent market setback […]

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U.S. exchanges are seeing fewer outflows than offshore competitors

Monitoring exchange inflows and outflows is a crucial aspect of market analysis. These metrics often serve as a barometer for market sentiment, providing insights into investor behavior and potential price movements. Recent data analysis reveals a noteworthy trend in the cryptocurrency market: U.S.-based exchanges are seeing significantly fewer Bitcoin outflows than their offshore counterparts. Data […]

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