The post Bitcoin Price To Skyrocket: Exchange Inflow/Outflow Ratio Signals Strong Buying Pressure appeared first on Coinpedia Fintech News
Bitcoin’s price has yet to recover from the recent drop, consolidating around $60k without a clear indication of its future direction. However, there are some signs that it could see a major rise with the current Bitcoin exchange inflow-outflow ratio hinting a strong buying pressure.
Strong Buying Pressure Detected
According to Axel Adler Jr., a verified author from CryptoQuant, recent data shows that the average Exchange Inflow/Outflow ratio for Bitcoin has surged, signaling robust buying activity. This notable shift is the 6th occurrence of such a pattern in the past decade.
Such data typically indicates that significant buying pressure is building up, potentially setting the stage for a price increase.
Retail Investors May Miss the Boat
Further Adler Jr. suggests that, while institutional investors and big players in the market will react to this signal, retail investors might be slow to catch on. The trend suggests that many retail investors tend to enter the market only when Bitcoin’s price surpasses $70,000.
By then, the major moves might already have been made, and these investors could miss out on early gains.
Big Investor Buying The Dip
Bitcoin (BTC) is currently trading above $59,000 but has dropped 7.5% this week after being rejected around the $65,000 resistance level. This decline is partly due to lower demand from US spot Bitcoin ETFs, which saw a net outflow of $103.8 million. However, some investors are taking this opportunity to buy BTC amid the dip.
Recently Coinpeida News reported that major players have withdrawn 40,000 BTC from exchanges in the past 48 hours, worth about $2.4 billion, signaling a significant shift in market sentiment.