On-chain data shows that bitcoin exchange inflows have continued to rise sharply recently as the price of the crypto further declined.
7-day MA continues to indicate bitcoin exchange inflows
As reported by an analyst in a CryptoQuant post, BTC inflows are increasing as the market is selling off.
“Exchange inflow” is an indicator that shows the total amount of bitcoin transferred to a centralized exchange wallet on any given day.
When the value of this indicator shows an uptrend, it means that investors are sending more number of coins to the exchanges.
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Such a trend can be bearish for the price of crypto as holders usually move to exchanges for selling purposes.
On the other hand, the lower values of the indicator suggest that there is not much selling happening in the bitcoin market at the moment.
Such a trend can be neutral or bullish for the value of the coin, depending on whether the outflow is low or high.
Now, here is a chart that shows the trend in BTC 7-day MA exchange flow over the past few months:
Looks like the value of the indicator has shot up recently | Source: CryptoQuant
As you can see in the graph above, bitcoin exchange inflows have risen sharply over the past few days.
The current value of the 7-day MA flow is the highest since March 2020, following the COVID-19 crash.
This shows that investors are continuously selling their coins as there is panic in the market due to the latest fall in prices.
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The volume in the post suggests that in the past there has been a respite in price only when the inflow has slowed down and fallen.
As the metric is still rising, the value of bitcoin is likely to see a further decline in the coming days.
btc price
At the time of writing, the price of bitcoin is around $31.8k, down 17% over the past seven days. In the past month, the value of crypto has fallen 26%.
The chart below shows the coin’s price trend over the past five days.
It seems like the value of the crypto has plunged down over the last few days | Source: BTCUSD on TradingView
Within a few days, the price of bitcoin has fallen sharply from $39k to the current level.
Earlier today, the value of the crypto also fell below $30k, and then quickly returned to the current price.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com