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Whale exchange inflows continue to decline

On-chain data shows that Bitcoin whale exchange inflows have been sluggish after reaching a local peak some time ago.

Bitcoin whales are not currently sending many coins to exchanges

As analysts pointed out in a CryptoQuant post, BTC inflows peaked recently and have continued to fall since then, indicating that the coin may be bottoming out.

“All Exchanges Inflow” is a metric that measures the total amount of Bitcoin transferred to wallets on all centralized exchanges.

A rise in the value of this indicator means that a large number of deposits are currently being made on the exchange. An investor usually sends coins to exchanges for the purpose of selling, so the value of such an indicator can be bearish against his BTC price.

On the other hand, low inflows indicate that there may be a sufficient amount of selling in the market at the moment. This kind of trend can be either bullish or neutral for the crypto value, depending on whether the outflow (opposite indicator) rises.

Here is a chart showing the trend of Bitcoin inflows to all exchanges over the past few years.

The value of the metric seems to have been low in recent days | Source: CryptoQuant

As you can see from the graph above, bitcoin exchange inflows peaked some time ago before the cryptocurrency dipped below $18,000.

This chart also includes data for two other metrics: “Top 10 Whale Influx” and 7-day average of total influx.

The former metric shows the sum of the top 10 deposits sent to the exchange. As these remittances are generally assumed to be from whales, this indicator gives an idea about the current selling behavior of these giant holders.

Both the whale influx and the seven-day average total influx seem to be following similar patterns in recent weeks.

Historically, a sharp inflow spike followed by a downward trend has been a sign of a bottoming out for cryptocurrencies.

Whales and other investors are also not putting much selling pressure on the market right now, which could lead to bullish results for Bitcoin going forward.

BTC price

At the time of writing, Bitcoin’s price is hovering around $23.2 thousand, down 5% over the past week.

bitcoin price chart

Looks like the value of the crypto has been consolidating sideways recently | Source: CryptoQuant
Featured image from Sandra Seitamaa on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Whale exchange inflows continue to decline

Source link Whale exchange inflows continue to decline

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