According to data from the Bitcoin Exchange, inflows into the cryptocurrency have risen over the last 24 hours. This may be bad news for its price.
Bitcoin Exchange Inflow has Observed 2 Spikes in the Past 24 Hours
In a CryptoQuant article, an analyst noted that both the inflow spikes of exchange inflows were approximately 21 BTC and 17.
The “exchange inflow mean” is an indicator that measures the mean amount of Bitcoin being transferred to the wallets of centralized exchanges per transaction.
It’s different from the normal inflow metric in that instead of simply measuring the total number of coins flowing into exchanges, it tells us how large the average transaction to exchanges has been recently.
This indicator’s value is higher if it indicates that investors are depositing large quantities of BTC onto exchanges. This can indicate market dumping.
On the other hand, low values of the metric suggest there isn’t much selling pressure in the Bitcoin market at the moment.
Below is a chart showing how BTC exchanges have changed over the past days.
The metric appears to be quite valuable in the recent past. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin inflow average has experienced a few spikes over the past 24 hours.
This first spike was around 21 BTC. That means at that time, the average exchange transaction involved 21 coins. Similar to the first spike, the median inflow value touched more than 17 BTC.
These spikes occurred as crypto prices soared, so they may be whales trying for profit.
In the past, the occurrence of multiple Bitcoin exchange inflow mean spikes larger than 15 BTC in value has generally been followed by a dip in the crypto’s price.
Here’s another chart, posted by the same quant earlier in the month. It shows a trend in inflow means.
Source: CryptoQuant| Source: CryptoQuant
At the time of writing, Bitcoin’s price floats around $20.6k, up 8% in the last week. In the past month, crypto’s value has risen by 6%.
Below chart displays the trends in the value of the coin during the last five working days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Hans-JurgenMager.com featured image, charts by TradingView.com, CryptoQuant.com chart