Spikes in Bitcoin Exchange Inflows Signal a Large Selloff is Looming


  • Bitcoin has continued trading sideways within the lower $9,000 region overnight, with its ongoing consolidation phase now extending over ten weeks
  • Although the crypto has yet to express any clear momentum, likely, this lackluster trading bout will ultimately result in it making a massive movement
  • Analysts are now noting that exchange inflows over the past few weeks have been surging, suggesting that traders may be preparing to offload their BTC
  • This could help provide the crypto with some clear direction, and the data heavily favors the crypto’s bears

Bitcoin has struggled to garner any clear momentum throughout the past ten weeks, creating a massive trading range between $9,000 and $10,000.

This lack of direction has made it incredibly unclear as to whether its next big movement will favor buyers or sellers.

How To Get Free Crypto  

One set of on-chain data that seems to signal that the next movement may be skewed in favor of Bitcoin bears is the fact that exchange inflows have been growing over the past few weeks.

The amount of BTC entering exchanges has far outweighed that leaving, making the net flow decisively bearish.

Bitcoin Continues Consolidating in the Middle of a Massive Trading Range 

At the time of writing, Bitcoin is trading down marginally at its current price of $230.

This is around the price level at which it has been trading throughout the past several days.

Because $9,200 has been established as a clear support level, whether or not buyers can continue defending this level could be the sole factor that determines where it trends next.

While zooming out and looking at Bitcoin’s macro price action, the two key levels one analyst is watching sit at $8,500 and $10,000.

He notes that these are clear range boundaries, and BTC is currently trading directly between the two levels.

The chart he offers below shows the crucial support and resistance levels that he is closely watching.

Image Courtesy of Josh Rager. Chart via TradingView.

BTC Exchange Inflows a Bearish Sign for Its Mid-Term Outlook 

Throughout the past few weeks, investors have been moving their Bitcoin into exchanges at a rapid pace, far exceeding the outflows seen over the same period.

Coinbase Banner  

One trader spoke about this trend, pointing to a chart showing multiple notable inflow spikes seen recently.

“BTC: Inflows showing constant spikes – and some decent amounts being sent to derivatives exchanges. Yet outflows remain relatively flat… Its been a consistent pattern for the last several weeks.”

Image Courtesy of TraderXO.

If this persists, it could suggest that investors are gearing up to sell their crypto once Bitcoin establishes a more definite trend.

Featured image from Shutterstock.
Charts and pricing data from TradingView.

Go to Source
Author: Cole Petersen


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.