An analysis of on-chain data reveals a recent trend of Bitcoin moving to Coinbase from other exchanges. This movement has historical significance for the asset.
Bitcoin Coinbase Flow Pulse Indicates Positive Trend
According to CryptoQuant analyst Axel Adler Jr, Coinbase has seen an increase in inflows from other exchanges, as shown by the “Coinbase Flow Pulse” indicator. This metric tracks the net flow of Bitcoin between Coinbase and other cryptocurrency exchanges.
The chart provided by the analyst illustrates the 7-day moving average of this indicator over the past years.
The positive Bitcoin Coinbase Flow Pulse since mid-2023 indicates net inflows to Coinbase from centralized exchanges. The comparison between the 7-day moving average and the 90-day moving average on the chart provides insight into BTC market trends.
When the 7-day moving average crosses below the 90-day moving average, it suggests bearish market conditions, whereas the opposite indicates bullish momentum. The recent crossover of these moving averages hints at a rise in demand for transferring coins to Coinbase.
This pattern previously preceded a rally to a new all-time high for Bitcoin, suggesting a potential bullish signal for the price. The flow of coins to Coinbase, favored by American institutional entities, could signify demand from U.S.-based whales.
Although the Coinbase Flow Pulse outlook is positive, CryptoQuant’s “Apparent Demand” metric, explained by Julio Moreno, paints a less optimistic picture as it indicates subdued Bitcoin demand in the overall market, not just the Coinbase-related segment.
Despite the recent surge, the Apparent Demand remains relatively neutral post a prolonged consolidation phase earlier in the year.
Bitcoin Price Movement
Currently, Bitcoin is trading around $61,000, reflecting a 5% increase over the past week.
