Bitcoin set a new all-time high (ATH) above the $104,000 mark during the past day, but on-chain data shows that investors are not yet willing to sell.
Bitcoin Exchange Netflow Remains Negative During Recent Rally
As explained by an analyst in a CryptoQuant Quicktake post, Bitcoin has continued to leave the exchange recently. The on-chain metric of relevance here is “Exchange Netflow,” which, as its name suggests, tracks the total amount of BTC flowing into or out of wallets attached to centralized platforms.
If the value of this metric is positive, it means that investors are making a deposit in the trade. As one of the main reasons why owners use these platforms for trading purposes, this type of trend can have a bearish meaning for BTC.
On the other hand, a negative indicator means that there are more cash outflows than cash inflows. Such a trend could be a sign that investors want to hold on to their long-term positions, which could be bullish for the stock price.
Now, here is a chart showing the trend in Bitcoin Exchange Netflow over the past few years:
As shown in the graph above, Bitcoin Exchange Netflow has seen a significant negative increase over the past month or so, suggesting that a large withdrawal has occurred.
This exodus has come even though the cryptocurrency has seen a huge run at new ATHs. The chart shows that was not the case during this year’s first quarter meeting.
The outflow was happening at that time for sure, but there were also visible spikes coming in between them, which meant that there was a need to sell the asset.
Recent negative Exchange Netflow has kept Bitcoin up for a recent rally above $100,000, a sign that investors are not yet willing to part with their BTC even at these high prices.
If this trend continues, it is possible that this run may still have more room to run. However, it remains to be seen how long the owners can last.
In general, when investors make high profits, the more likely they are to participate in large sales. So, as Bitcoin continues to perform well, it may only be a matter of time before a major profit-taking tower arrives.
BTC price
Bitcoin has finally broken out of its recent consolidation phase with a surge of over 7% over the past 24 hours. The stock briefly broke above the $104,000 level in this session, but its price has since seen a minor pullback to $103,500.
