Analysts warn of potential Bitcoin price correction due to rising exchange reserves and positive netflows, indicating investor caution and profit-taking intentions.
Bitcoin has struggled to maintain any momentum on the charts, trading sideways over the past 2 weeks. At the time of writing, Bitcoin was trading at $94,480 following losses of 2.01% over a 24-hour timeframe. Analysts are discussing BTC’s price trajectory, with some anticipating a potential crash. IT Tech, a popular Cryptoquant analyst, predicts a potential market correction due to rising reserves and netflows.
For example, BTC’s spot exchange reserves recently saw a significant uptick with 20k BTC inflows after declining consistently for the past month. This indicates more Bitcoin moving into exchanges, potentially signaling selling pressure. Additionally, netflows across all exchanges turned positive with +15.8k BTC reversing its previous negative trend. When netflows turn positive, it suggests inflows are exceeding outflows. Combining with rising reserves, it alludes to investors preparing for profit-taking. These market changes may reflect growing caution or a shift in market sentiment. Investors are likely preparing for profit-taking or anticipating a price correction. If these trends continue, greater volatility and potential downward pressure on BTC’s price could occur, especially in the near term. This bearishness is not limited to retail traders but also large holders. According to IntoTheBlock, large holders’ netflow to exchange netflow ratio surged over the past week from -0.04 % to 0.27%.
Bitcoin Price Correction Crypto Market Exchange Reserves Netflows
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