Bitcoin’s exchange reserve rises as netflows turn positive
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Bitcoin’s exchanges reserves saw an upswing with +20k BTC inflows Bitcoin’s netflow turned positive after weeks of decline Since hitting an all-time high of $108k on the charts, Bitcoin [BTC] has struggled to maintain any momentum on the charts. In fact, the crypto has traded sideways over the past 2 weeks. At the time of writing, Bitcoin was trading at $94,480 following losses of 2.01% over a 24-hour timeframe. Needless to say, the prevailing market conditions have left analysts talking about BTC’s price trajectory, with some of them even anticipating a potential crash. IT Tech, a popular Cryptoquant analyst, is one of them, with the aforementioned predicting a potential market correction in lieu of rising reserves and netflows. Bitcoin’s reserves and exchange netflows soar According to Cryptoquant, Bitcoin metrics have been flashing signs of a potential change in market dynamics. For example – BTC’s spot exchange reserves, after declining consistently over the past month in light of investors getting their assets off exchanges, recently recorded a significant uptick with 20k BTC inflows. Source: Cryptoquant When spot reserves record a sustained hike, it indicates that more Bitcoin has been moving into exchanges. This usually signals an intent to trade or sell, introducing potential selling pressure. Therefore, this could be one of the early indicators of short-term market volatility or correction. Source: Cryptoquant Additionally, netflows across all exchanges turned positive with +15.8k BTC reversing its previous negative trend. When netflows turn positive, it indicates that inflows to exchanges are outpacing outflows. When positive netflows combine with a rising reserve, it alludes to the strengthening of the chances of profit-taking behavior by Bitcoin investors. These market changes may reflect signs of growing caution or a shift in market sentiment. Simply put, investors are likely preparing for profit-taking or anticipating a price correction. Therefore,…
Filed under: News - @ December 28, 2024 12:15 pm