On-chain data shows that Bitcoin net flows have seen a strong negative spike recently, a sign that could be bullish for the crypto.
Bitcoin net flows show 13.7,000 BTC left exchanges in a single day
As one analyst pointed out in a CryptoQuant PublishBTC netflow recently observed a strong negative value.
The “netflow of all exchanges” 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 simply calculated by taking the difference between trade inputs and trade outputs.
When the net flow value is positive, it means that a net amount of coins is moving to the exchanges as the inflows exceed the outflows.
Such a trend can be bearish for the price of BTC, as investors usually deposit their crypto on exchanges for the purpose of selling.
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On the other hand, a positive net flow, when prolonged, can prove bullish for the value of the crypto as it can be a sign of accumulation from investors.
Now, here is a graph that shows the trend of Bitcoin netflows over the past few months:
It seems like the value of the metric has been highly negative recently | Source: CryptoQuant
As you can see in the chart above, the Bitcoin net flow observed a significant negative value just a few days ago.
This red spike stood at around 13.7,000 BTC, leaving exchange wallets within a day. From the chart, it seems that a similarly negative net flow value was also seen earlier in the year.
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Shortly after this previous peak, the price of the coin saw a rally. If the pattern also holds this time around, BTC could benefit from an uptrend in the near future.
At the time of writing, the price of Bitcoin is hovering around $39.5,000, down 1% in the past seven days. Over the past month, the crypto has lost 15% in value.
The chart below shows the price trend of the coin over the past five days.
Looks like the value of the coin has surged up over the last twenty-four hours | Source: BTCUSD on TradingView
Bitcoin has had a tough 2022 so far, the crypto price has struggled to gain ground permanently to higher levels.
The coin finally seemed to make a real recovery just a month ago when it broke through the $47,000 mark, but since then the price has declined again and is now consolidating below the $40,000 level. .
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com