On-chain data shows that bitcoin exchange inflows have increased over the past day, something that could prove bearish for the price of the crypto.
Bitcoin Exchange Inflow Mean Has Seen Two Spikes in the Last 24 Hours
As told by an analyst at Cryptoquant PostThe two exchange inflows meant spikes were around 21 BTC and 17 BTC respectively.
The “Exchange Inflow Mean” is an indicator that measures the average amount of bitcoin transferred per transaction to the wallets of centralized exchanges.
It differs from the normal flow metric because instead of measuring the total number of coins flowing across exchanges, it tells us how large the average transaction has been for exchanges in the recent past.
When the value of this indicator is high, it means that investors are depositing a lot of BTC on the exchanges right now. Such a trend could be a sign of dumping in the market.
On the other hand, the lower values of the metric suggest that there is not much selling pressure in the bitcoin market at the moment.
Now, here is a chart that shows the trend in BTC exchange inflows over the past few days:
Looks like the value of the metric seems to have been quite high recently | Source: CryptoQuant
As you can see in the above graph, the bitcoin exchange inflow mean has seen some spikes in the past 24 hours.
The first of these was around 21 BTC, meaning that the average transaction going through the exchange at the time involved 21 coins. Similarly, the second spike had an average throughput value of over 17 BTC.
Since these spikes come as the price of crypto increases, they may have come from whales trying to profit from the pump.
In the past, the occurrence of multiple bitcoin exchange inflows has meant that spikes in value larger than 15 BTC are usually followed by a drop in the price of the crypto.
Below is another chart posted on similar volumes earlier in the month, showing a recent example of such a trend in the inflow mean.
The exchange inflow mean spikes lead to the price going down | Source: CryptoQuant
At the time of writing, bitcoin is priced around $20.6k, up 8% over the past week. In the past month, the value of crypto has risen by 6%.
The chart below shows the coin’s price trend over the past five days.
The value of the crypto seems to have surged up recently | Source: BTCUSD on TradingView
Featured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, CryptoQuant.com