Emily Walker
Recent blockchain analysis reveals that Bitcoin’s exchange netflow has consistently been negative over the last week, indicating that large investors are acquiring more assets.
Bitcoin’s Exchange Netflow Trends Downward
According to a recent update by market intelligence firm IntoTheBlock, the Bitcoin Exchange Netflow, which gauges the net volume of Bitcoin moving into and out of centralized exchange wallets, has shown significant trends lately.
A positive netflow suggests that more tokens are being deposited by investors on these platforms, usually for selling, which can create downward pressure on Bitcoin’s price. Conversely, a negative netflow demonstrates that outflows are greater than inflows, implying that investors are moving their assets off exchanges, typically to hold long-term, potentially supporting a bullish outlook for Bitcoin.
Below is a chart illustrating the Bitcoin Exchange Netflow over the past week:
The chart indicates sustained negative netflow for Bitcoin, suggesting that net withdrawals from exchanges have been ongoing, even amid recent price declines. This resilience may indicate that larger investors remain bullish about Bitcoin’s future. If the trend of increased accumulation holds, it could help facilitate a price recovery for Bitcoin.
In related news, Bitcoin’s latest price correction occurred after a rejection at the upper limit of the Market Value to Realized Value (MVRV) Extreme Deviation Pricing Bands, as highlighted by analyst Ali Martinez in a post on X here.
The MVRV model, which tracks investors’ profitability, suggests that when profits are excessively high, significant sell-offs may occur, setting a peak for the asset. The upper pricing band indicates this risk zone.
As Martinez pointed out,
Bitcoin $BTC faced resistance at the upper red band at $109,400. Not reclaiming this level shifts attention to the next major support at the orange MVRV band, currently at $91,700.
Current BTC Price
Currently, Bitcoin is priced around $102,400, representing a 2% decline over the past week.