On-chain data shows the Bitcoin exchange netflow has stayed at negative levels in the course of the past week, implying the whales have been accumulating.
Bitcoin Exchange Netflow Has Remained Below Zero Recently
In a recent post on X, the market intelligence platform IntoTheBlock has discussed concerning the latest trend within the Bitcoin Exchange Netflow. The “Exchange Netflow” here refers to an on-chain indicator that keeps track of the online amount of the asset that’s stepping into or exiting out of the wallets related to centralized exchanges.
When the worth of this metric is positive, it means the investors are depositing a net variety of tokens to those platforms. As certainly one of the most important the reason why holders would transfer their coins to exchanges is for selling-related purposes, this type of trend can have a bearish effect on the asset.
However, the indicator being lower than zero implies the exchange outflows are outweighing the inflows. The investors generally take their coins away from the custody of those platforms after they need to hold into the long run, so such a trend can prove to be bullish for BTC’s price.
Now, here is the chart shared by the analytics firm that shows the trend within the Bitcoin Exchange Netflow over the past week or so:
The worth of the metric seems to have been under the zero mark in recent days | Source: IntoTheBlock on X
As displayed within the above graph, the Bitcoin Exchange Netflow has held a negative value in the course of the last week, which suggests the investors have repeatedly been withdrawing net amounts from the exchanges.
The online outflows have interestingly continued through the newest plunge within the asset’s price, which could mean that the whale entities are still optimistic concerning the asset. Naturally, if the trend of accumulation doesn’t break in the approaching days, Bitcoin may gain advantage from a bullish rebound.
In another news, the newest correction for Bitcoin occurred following a rejection from the highest level of the Market Value to Realized Value (MVRV) Extreme Deviation Pricing Bands, as analyst Ali Martinez has explained in an X post.
The trend in the assorted pricing bands of the model over the previous couple of years | Source: @ali_charts on X
This pricing model is predicated on the favored MVRV Ratio, which mainly keeps track of investor profitability. When holder profits get too high, a mass selloff can change into probable, which may result in a top within the asset. The highest pricing band of the model serves as a boundary for when that is the almost definitely to occur.
As Martinez notes,
Bitcoin $BTC was rejected on the upper red pricing band at $109,400. Failing to reclaim this level shifts focus to the subsequent critical support on the orange MVRV pricing band, currently sitting at $91,700.
BTC Price
On the time of writing, Bitcoin is floating around $102,400, down around 2% within the last seven days.
Looks like the worth of the coin has plunged over the past couple of days | Source: BTCUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, Glassnode.com, chart from TradingView.com