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Bitcoin Bullish Signal: Netflow Sees Strong Negative Spike



Bitcoin Bullish Signal: Netflow Sees Strong Negative Spike


On-chain data shows that Bitcoin net flows have seen a sharp negative spike recently, a sign that could be bullish for the crypto.

Bitcoin Net Flows Show 13.7,000 BTC Trades Left in a Single Day

As one analyst pointed out in an article on CryptoQuant, the net flow of BTC has recently seen a strong negative value.

“All exchanges net flow” is an indicator that measures the net amount of Bitcoin entering or leaving the wallets of all centralized exchanges.

The value of the metric is calculated simply by taking the difference between business inputs and business outputs.

When the net flow value is positive, it means that a net amount of coins is moving into exchanges as inflows exceed outflows.

Such a trend can be bearish for the price of BTC, as investors often deposit their cryptocurrencies on exchanges in order to sell.

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On the other hand, a positive net flow, when prolonged, can be bullish for the value of the cryptocurrency, since it can be a sign of accumulation by investors.

Now, here is a graph showing the trend of Bitcoin net flows in the last few months:

It seems that the value of the metric has been very negative lately | Source: CryptoQuant

As you can see from the chart above, the net flow of Bitcoin saw a significant negative value just a few days ago.

This red spike stood at around 13.7,000 BTC, which left exchange wallets in a day. From the graph, it appears that a similar negative net flow value was also observed earlier in the year.

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Shortly after this previous spike, the price of the coin saw an uptick. If the pattern holds this time as well, BTC could benefit from an uptrend in the near future.

BTC price

At the time of writing, the Bitcoin price is hovering around $39,5000, down 1% in the last seven days. Over the last month, the cryptocurrency has lost 15% in value.

The chart below shows the price trend of the coin in the last five days.

It seems that the value of the currency has risen in the last twenty four hours | Source: BTCUSD on TradingView

Bitcoin has had a rough 2022 so far, the price of cryptocurrencies has struggled to gain ground permanently at higher levels.

The coin finally seemed to really recover just a month ago when it broke above the $47,000 mark, but since then the price has dropped back down and is now consolidating below the $40,000 level.

Featured Image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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