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If you thought the Bitcoin wave was over, the new metrics might require you to think again. The $19850 price peak has not been retested, but in the long term, new metrics are suggestive of a promising new year. On-chain analytics data platform CryptoQuant is back with bullish data on Bitcoin. As of this week, the average inflow to exchanges has reached an eight-month high, this was last seen in March when inflow hit its lowest.
“Whales benefit from retail investors. Ironically, if you see the low frame, the Exchange inflow Mean is a bullish signal. Whales are depositing to exchanges, but they don’t sell BTC. The time they sell coins is when retail investors are active on exchanges.”
Adding that this is a relevant validator for the “buy-the-dip,” concept, as CryptoQuant data says;
“The signal can also be used as a buy-the-dip indicator. Whales deposit BTC to exchanges a lot after the plummet, but they eventually realize that it’s too low price to sell BTC.” The reference to buying the dip couldn’t have come at a better time if you’ve been following the market sentiments for the last month.
Usually, bear markets are favorable in the long term because a market bounce back psychologically follows. For Bitcoin, which is still yet to lose steam in the market as far as uncertainty is concerned, every downtrend can be a strategic entry point for traders.