As Bitcoin Makes New ATH, Netflow Hints BTC Will Explode Here
October 20 2021 - 3:00PM
NEWSBTC
The history of the Bitcoin netflow indictor may suggest that the
current market is ready for the next major price swing up as the
crypto makes a new ATH. Bitcoin Netflow Has Historically Approached
Zero Before Major Price Upswings As explained by an analyst in a
CryptoQuant post, there seems to be a relationship between BTC
netflows and price swings upward. The Bitcoin netflow indictor is
defined as the difference between the inflows and the outflows, and
it shows the net amount of the crypto entering or exiting
centralized exchanges. When the metric takes on negative values, it
means there are more investors withdrawing their coins compared to
those depositing. Sustained such a trend can be bullish for BTC as
holders usually take their crypto off exchanges for hodling or
selling through OTC deals. On the other hand, when more coins are
flowing into exchanges than those flowing out, the netflow shows
positive values, which may be bearish as it implies investors are
sending their Bitcoin to exchanges for withdrawing to fiat or for
buying altcoins. Now, here is a chart that shows the trend in the
value of the indicator over the last year: The relation between BTC
price and the netflows | Source: CryptoQuant In the above graph,
the analyst has marked the behavior of the indicator compared with
the Bitcoin price. As is apparent, the netflow always touched the
zero mark right before a big price move up. A netflow value of zero
means the investors taking out their coins from exchanges are
balanced by those putting them in. Related Reading | Bitcoin
Futures ETF Exceeds Expectations, Trades $1 Billion On Day One This
trend seems to have been followed during the bull run earlier in
the year, and so far the current rally has also followed it. Right
now, the netflow is right at zero, which makes the current point
suitable for making another big move up. And it seems to have
already begun as… BTC Price Makes New All-Time High! Bitcoin has
reached a new ATH today as the crypto trades at $66k at the time of
writing. The below chart shows the trend in the price of BTC over
the last 24 hours. Related Reading | Ethereum Breaks $4,000,
All-Time High Unavoidable? BTC breaks past $65k to make a new ATH |
Source: BTCUSD on TradingView Bitcoin is now heading into unknown
territories as every move up now will result in a new ATH to be
reached. Knowledge of past bull runs hints that the volatility will
probably shoot up now and the crypto will experience wilder price
swings. And if the netflows are anything to go by, BTC looks ready
to explode from this point. Featured image from Unsplash.com,
charts from TradingView.com, CryptoQuant.com
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