On-chain data shows the Bitcoin exchange inflows have spiked up over the last day, something that could prove to be bearish for the price of the crypto.
Bitcoin Exchange Inflow Mean Has Observed Two Spikes In The Past 24 Hours
As pointed out by an analyst in a CryptoQuant post, the two exchange inflow mean spikes amounted to around 21 BTC and 17 BTC respectively.
The “exchange inflow mean” is an indicator that measures the mean amount of Bitcoin being transferred to the wallets of centralized exchanges per transaction.
It’s different from the normal inflow metric in that instead of simply measuring the total number of coins flowing into exchanges, it tells us how large the average transaction to exchanges has been recently.
When the value of this indicator is high, it means investors are depositing a lot of BTC to exchanges right now. Such a trend can be a sign of dumping in the market.
On the other hand, low values of the metric suggest there isn’t much selling pressure in the Bitcoin market at the moment.
Now, here is a chart that shows the trend in BTC exchange inflow mean over the last 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 a couple of spikes in the last 24 hours.
The first of these measured to around 21 BTC, which means that at the time it occurred the average transaction going into exchanges involved 21 coins. Similarly, the second spike had the mean inflow value touch more than 17 BTC.
Since these spikes have come as the price of the crypto has surged up, they could be coming from whales trying to profit from the pump.
In the past, the occurrence of multiple Bitcoin exchange inflow mean spikes larger than 15 BTC in value has generally been followed by a dip in the crypto’s price.
Below is another chart that the same quant posted earlier in the month, which displays a recent instance of this kind of trend in the inflow mean.
The exchange inflow mean spikes lead to the price going down | Source: CryptoQuant
At the time of writing, Bitcoin’s price floats around $20.6k, up 8% in the last week. Over the past month, the crypto has gained 6% in value.
The below chart shows the trend in the price of the coin over the last 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