On-chain data shows the Bitcoin exchange outflows have spiked up recently, a sign that could prove to be bullish for the crypto’s price.
Bitcoin Exchange Netflow Has Noticed Very Deep Red Values in Recent Days
An analyst pointed out that investors recently withdrawn over 60k BTC from cryptocurrency exchanges.
The relevant indicator here is the “all exchanges netflow,” which measures the net amount of Bitcoin entering or exiting wallets of all centralized exchanges. The metric’s value is simply calculated by taking the difference between the inflows and the outflows.
This indicator has a value greater than 0. It means that more inflows are taking place than outflows. This trend can become a warning sign for investors that there may be some dumping.
Negative netflow values, on the other hand could indicate that investors are currently taking out more coins than they have. This kind of trend can indicate buying pressure in the market, and hence could be bullish for BTC’s value.
Here’s a chart showing the Bitcoin All Exchanges Netflow trend over the past month.
Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the netflow of Bitcoin exchanges has seen some spikes in the past three days.
These downward surges in the indicator’s value have amounted to more than 61k BTC leaving exchange wallets, the largest stack of withdrawals in months.
The crypto’s price has been struggling hard for many months now, so this kind of fresh demand could be constructive for the coin, and help it turn things around, at least temporarily.
At the time of writing, Bitcoin’s price floats around $19.1k, up 1% in the last seven days. The crypto’s value has fallen 5% over the last month.
The chart below shows how the currency’s price has changed over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin hasn’t seen much price activity at all recently as the value of the crypto has been painting a flat curve. One exception was the surge to $20k a couple of days back, but it wasn’t long before the spike died down and BTC returned to its trend of consolidation.
Featured Image by Dylan Leagh, unsplash.com. Charts from TradingView.com and CryptoQuant.com.