Bitcoin Exchange Leak Suggests Market Is In Full Accumulation Mode

With Bitcoin falling below $20,000, investors from all walks of life are seizing the opportunity to raise money. This accumulation trend was not immediately apparent at first given the high volatility caused by the FOMC meeting. But now that the market has settled into some normal range, the accumulation trend looks to be in full swing.

Increased outflow of exchanges

Over the past week, there has been a spike in Bitcoin exchange outflows. They continued to outperform daily inflows, resulting in negative net inflows across centralized exchanges. In large part, this accumulating trend has been led by whales, and in one instance a Bitcoin whale held around 5,000 BTC in a few weeks.

Combined inflows and outflows on centralized exchanges speak for themselves. Over the past seven days, a total of $3.4 billion in BTC has flowed into the exchange, with outflows of his $4.9 billion. This translates to a net negative flow of $1.4 billion in a week.

🚨 Weekly on-chain transaction flow 🚨#bitcoin $BTC
➡️ $3.4 billion
⬅️ $4.9 billion
📉 Netflow: -$1.4B#ethereum $ETH
➡️ $1.4 billion
⬅️ $1.5 billion
📉 Netflow: -$90.0M#tether (ERC20) $USDT
➡️ $2 billion
⬅️ $2.1 billion
📉 Netflow: -$71.2Mhttps://t.co/dk2HbGwPL4

— Glassnode Alerts (@glassnodealerts) October 10, 2022

This week’s net flow in Tether (USDT) shows the same accumulation trend. $2 billion of his USDT flowing into exchanges in 7 days suggests investors are not looking to stablecoins for safety, but are instead throwing more skins into the Bitcoin game. is shown.

Block trades also flourished during this time, with $160.2 billion in block trades recorded in seven days. Exchange deposit also reached its lowest level in two years.

BTC settles below $20,000 | Source: BTCUSD on TradingView.com

Bitcoin may still be bearish

Despite the accumulation trend that formed in Bitcoin last week, investors still don’t seem entirely convinced about the bullish future for digital assets, especially in the short term. That’s why it kept going up last week.

This indicator often shows whether an investor is trying to hold the coin or is following a selling trend. Investors are not selling coins when the active supply is low. When it starts to rise, it indicates that selling is in full bloom.

Given that this reached an all-time high of 65.977%, it’s hard to tell whether the accumulation trend is enough to push Bitcoin’s price higher. It is leading the way and sparking hope for digital assets.

Featured image from Forbes, chart from TradingView.com

follow Best Owie on Twitter Market insights, updates, the occasional funny tweet…