Yesterday, BTC dropped below $30k for the first time since the start of the year, but it quickly rebounded to around $32k.
Signs That Show Rising Bitcoin Accumulation
Exchange inflow is the number of coins deposited into exchange wallets. If it increases, it means that more people are sending their Bitcoin to exchanges, indicating a dump.
On the other hand, exchange outflow is the number of coins withdrawn from exchange wallets. If this value goes up, more people are sending their BTC to individual wallets, meaning they are buying more.
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As mentioned before, the relevant term here is exchange netflow, which is just the difference between the inflow and the outflow.
Exchange Netflow = Exchange inflow – Exchange Outflow
Now as per the data by CryptoQuant, here is how the Bitcoin exchange netflow graph looks like for the past 7 days:
As is clear from the chart, the Bitcoin netflow is showing deep negative behavior.
The interesting thing is, such a large movement of coins must mean some whales have started accumulating.
BTC has rebounded from the crash to below $30k, and seems to on a rise. In the last 24 hours, it’s up almost 18%. Though, when looking over the past 7 days, the cryptocurrency is still down 12%.
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It’s hard to say right now where the price will head next as it has been a chaotic few weeks. The current upwards trend is probably only temporary, however.
Some experts believe the market is going to go further down, but long-term it will go up.
One thing is for certain, though, with whales starting to accumulate more Bitcoin, there is surely some bullish sentiment around the market.