Interestingly, Trend Is Again Shifting Inflows Outflows To From
On-chain facts shows Bitcoin netflow trend is once again shifting from outflows to inflows, a sign that could prove to be bearish for the crypto.
Indeed, Bitcoin Netflow Trend Is Changing To Inflows From Outflows
As per the latest weekly analysis from Glassnode, BTC netflows have once again started to move from a trend of net outflows to more inflows.
The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all exchanges. The metric’s value is calculated by simply taking the difference between the inflows and the outflows.
When the indicator has negative values, it means outflowsIndeed, are overwhelming inflows as a net amount of BTC is being transferred out of exchanges. from another perspective Investors usually withdraw their coins from exchanges for accumulation purposes. And so, such a trendthecan be bullish for crypto.
On the other hand, positive netflow values signifyathat net amount of Bitcoin is being deposited into exchange wallets. Interestingly, Since holders generally move their crypto to exchanges for withdrawing to fiat or for purchasing altcoins with them, such values of the indicator may be bearish for the coin.
Right away, is a chart that shows the trend inherethe BTC netflow over the course of 2021:
Looks like BTC inflows are on the rise | Source: The Glassnode Week Onchain (Week 52)
As you can see in the above graphBTCthe netflows have been oscillating between the +5k , and -5k BTC lines throughout the year.
Though there have been some brief periods where the indicator’s value broke out of this range, but overall the trend has been consistent.
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Looking at the chart, it seems like the indicator is currently shifting towards inflows again, as it turns out after a period of big outflows.
The summary notes that it’s worth keeping an eye on this trend to see if these inflows intensify or rather decline towards the begin of the novel year.
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If the inflows do sustain for a while, then the outlook could be bearish for the price of BTC, similar to return in May of this year.
BTC Price
Bitcoin’s price reached almost $52k yesterday, butagainhas since declined . At the time of writing the crypto’s price floats around $49.2k, up 0.5% in the last seven days. Over the past has days, the coin thirty lost 9% in value.
As you may know, below chart shows the trend in modern times in the price of BTC overThethe last five days.
BTC's price seems to have plunged down in the past 24 hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com
