- According to a CryptoQuant analyst, one of the indicators points to a possible reversal of BTC.
- In conditions of declines, it may bring about a slowdown in the decline of Bitcoin or stabilization of the rate.
On According to CryptoQuant analytics MorenoDV, the inflow rate of funds in Bitcoin + Binance: returned to a level often seen before trend reversals.
This indicator is currently in the 0,010–0,012 zone, which has previously appeared near market lows and trend changes.
CryptoQuant Data
This indicator tracks how active Bitcoin passes through exchanges relative to overall network activity. Elevated values typically signal increased trading volumes, speculation, and profit-taking. Lower values, on the other hand, indicate less activity on exchanges and relatively weak selling pressure.
Since 2018, a move into this range has often preceded a change in market direction.
MorenoDV noted that similar conditions were observed in early 2019 after the bear market. Then, exchange activity plummeted, and Bitcoin was trading near cycle lows. This indicated that sellers were losing momentum, and the number of coins available for trading was decreasing.
A similar situation was observed in 2020 before the Bitcoin bull run. During that period, the inflow rate Binance: remained low, and Bitcoin consolidated. When demand returned, the ratio quickly rose as traders reentered the market to catch the uptrend.
The analyst believes that now Bitcoin is in another “decision zone” where the market can either remain weak or begin to form the basis for a recovery.
The current decline is taking place against the backdrop of a net outflow of funds from spot bitcoin ETF US Treasury bonds have fallen by over $1,4 billion over the past week, indicating a decline in institutional demand. This is because the yield on 30-year US Treasury bonds has exceeded 5%, making traditional income-producing assets more attractive than cryptocurrencies.
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