Bitcoin's recent price decline is fueled by sustained negative netflows, a trend not observed in previous cycles. This, coupled with short-term holder selling pressure, raises questions about the severity of the current pullback. However, the sustained negative netflows also suggest a potential for a milder correction due to reduced panic selling by long-term holders.
Bitcoin ( BTC ) has been experiencing a period of sustained negative netflows, a phenomenon not seen in previous cycles. This trend, coupled with short-term holder selling pressure, has contributed to the recent price decline. However, there are reasons to believe that this pullback might be less severe than those witnessed in past bull runs.The 30-day moving average of Bitcoin inflows to exchanges has been steadily declining since early December, reaching lows last seen in October and June 2024.
This decrease in inflows, occurring while BTC consolidated below the $100,000 psychological level, was a bullish signal.Furthermore, the netflows, which represent the difference between inflows and outflows, have also been trending downwards. This sustained negative netflow period, lasting for over eleven months, surpasses the three-month outflow seen in 2020. While it's unclear if this will translate into equally dramatic price gains, it suggests that long-term holders might react less intensely to pullbacks, potentially limiting volatility and deep drawdowns
Bitcoin BTC Netflows Market Sentiment Pullback
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