Whales are accumulating Bitcoin again, according to data from CryptoQuant which shows a very negative BTC net flow.
yesterday, BTC drops below $30K For the first time since the beginning of the year, but it quickly rebounded to about 32 thousand dollars.
Signs That Bitcoin Accumulation Is Rising
The “tag” to focus on here is BTC netflow to/from exchanges. To understand what emerges, we will first have to look at two specific terms, internal and external drainage flow.
Internal exchange flow is the number of currencies deposited in exchange wallets. If it increases, it means that more people are sending their bitcoins to exchanges, which indicates a dump.
On the other hand, the exchange flow is the number of coins withdrawn from the exchange wallets. If this value goes up, more people send their bitcoins to individual wallets, which means they buy more.
Related reading | Cryptocurrency Market Intense Fear, Is It Time to Buy Bitcoin Blood?
As mentioned before, the relevant term here is net drain flow, which is just the difference between inflow and outflow.
net drainage = drainage flow – drainage flow
Now according to CryptoQuant data, here is what the net graph of Bitcoin’s flow looks like in the past seven days:
BTC exchange netflow shows deep red | Source: CryptoQuant
As can be seen from the chart, the net flow of Bitcoin shows a profound negative behaviour.
The negative net flow behavior means that more BTC is moving outside the exchange than inside. For example, from the chart, 5k BTC moved to individual wallets yesterday alone.
Last week, the highest number of bitcoins transferred was between the 15th and 16th day, with a total of 39K traded. BTC I moved out of the exchanges.
The interesting thing is that such a large movement of currencies should mean that some whales are starting to pile up.
BTC has bounced back from the crash below $30K, and it appears to be on the rise. In the last 24 hours, it’s up about 18%. Though, looking over the past seven days, the cryptocurrency is still down by 12%.
At the time of writing, it was Currency It trades around $34,000. Below is a graph showing the variation in the value of BTC over the past four months:
BTC gains a momentarily upwards trend after the latest crash | Source: BTCUSD on TradingView
It is difficult at the moment to say which direction the price will go next as it has been a chaotic few weeks. However, the current uptrend is probably only temporary.
Some experts believe that the market will fall further, but will rise in the long run.
One thing is for sure, although whales are starting to accumulate more bitcoins, there is sure to be some bullish sentiment in the market.