On-chain data shows that Bitcoin exchange outflows have risen recently, a sign that could be bullish for the crypto’s price.
Bitcoin Exchange Netflow Has Been Observing Deep Red Values in Recent Days
As noted by an analyst in a CryptoQuant afterinvestors have recently withdrawn more than 60k BTC from exchanges.
The relevant indicator here is the “all exchanges netflow”, which measures the net amount of Bitcoin entering or leaving the wallets of all centralized exchanges. The value of the metric is simply calculated by taking the difference between the influx and the outflow.
When the value of this indicator is greater than zero, it means that there is more inflow into the market than outflow. Such a trend, if prolonged, could be bearish for the price of the crypto as it could be a sign of investor dumping.
On the other hand, negative values of net flow suggest that investors are withdrawing a net amount of coins at this time. Trends like this can indicate buying pressure in the market and can therefore be bullish for the value of BTC.
Now, here’s a chart showing the trend in Bitcoin all exchanges netflow over the past month:
The value of the metric seems to have been below zero in recent days | Source: CryptoQuant
As you can see in the chart above, Bitcoin has seen some negative spikes over the past three days.
These downward increases in the value of the indicator exceeded 61k BTC and left exchange wallets, the largest pile of withdrawals in months.
The price of the crypto has been struggling hard for many months now, so this kind of new demand could be constructive for the coin and help turn things around, at least temporarily.
BTC price
At the moment of writing, The price of Bitcoin hovers around $19.1k, up 1% over the past seven days. Over the past month, the crypto has fallen 5% in value.
Below is a chart showing the trend in the price of the coin over the past five days.
Looks like the value of the crypto has been mostly trending sideways during the last few days | Source: BTCUSD on TradingView
Bitcoin has not seen much price activity lately as the value of the crypto has drawn a flat curve. An exception was the rise to $20ka a few days ago, but it didn’t take long for the spike to subside and BTC to return to its trend of consolidation.
Featured image from Dylan Leagh on unsplash.com, charts from TradingView.com, CryptoQuant.com
