BTC Inflow On Exchanges Reaches “Danger Zone”: Analysis

The BTC inflows on exchanges reach a “danger zone” after it slowly neared the $16,000 level with traders moving their funds into spot exchanges. In today’s Bitcoin news, we find out more about it.

Ki-Young Ju, the chief executive of data aggregation service CryptoQuant commented that All exchange inflow mean, an average of BTC deposits across the global crypto trading platforms which spiked above 2 BTC on Friday. The metric alerted about the increased activity among the so-called whales which point to a sell-off in the short-term:

 “I’d recommend to keep on eyes on this chart [below] to time when to sell BTC.”

The analyst’s bearish outlook took cues from the early price-inflow correlation with Bitcoin’s inflow into exchanges touching 2 BTC on October 28. On the same day, the BTC/USD exchange rate dropped by 3.62 percent. The analyst treats a surge in the exchange’s BTC balance as a bearish element because traders typically store their crypto holdings offline. They transfer it to exchanges only when they want to trade their Bearish tokens for the alternative crypto assets or fiat money. similarly, when the BTC outflow from exchanges picks momentum, it shows that an increase in HOLDING behavior can be noticed among traders.

Mr. Ju confirmed that All Exchange Inflow Mean was indeed a danger zone to reaffirm that it would not lead to a BTC price crash later. The analyst concluded the bullish behavior after checking on the 9o-day moving average of the exchange Whale Ratio. The readings were low once the deposits of Bitcoin spiked which led Mr. Ju to say that traders in the long-term bullish outlook are safe from mass dumping.

The BTC inflow on exchanges reached the danger zone because of the relative size of the top 10 inflows to total inflows by day of each exchange, it means that fewer whales are moving their BTC funds on the 90-day timeframe. Technically, the current BTC/USD exchange rate is above normal levels according to the daily RSI. Reading above 70, the RSI determined Bitcoin as an overbought asset and according to the recent follow-ups from the overbought zone, it means a new correction will hit both the momentum and the BTC price. the cryptocurrency could fall back after testing $16,000 as resistance to either form local support or will extend the decline towards deeper downside levels:

 “We’ve had 10 straight green candles on the 4-hour chart,” said one trader. “If this starts pulling back, there isn’t much below us till 14.2 or so.”