The on-chain analytics and historically low exchange flows suggest that the price of bitcoin (BTC) may be close to bottoming out.
Retail traders are still impatiently waiting for Bitcoin’s (BTC) price to move above its present level. According to on-chain data, the last two weeks’ stats indicate that the BTC exchange inflows are experiencing a historically low period. The delay will still be necessary if BTC inflows continue to rise and buck the trend. In other words, a period of heavy BTC exchange inflows may indicate that the local Bitcoin bottom has not yet been taken into account. Also, you should think about how the current market cycle has broken a few of these trends, which makes it sometimes hard to predict.
Lowest BTC Total Inflows on Record
The total amount of Bitcoin exchange inflows provides a basic indication of where the current local bottom is. The recent BTC influx figures are the lowest in up to 7 years, according to Crypto Quant data. The low average, meanwhile, might not persist much longer, according to popular opinion. This takes into account both the macroeconomic prognosis for the near future as well as the existing market conditions around liquidity with Genesis Trading.
“Currently we are under 26k (looking at a 14-day simple moving average (SMA)) daily BTC total inflows, which is the lowest since mid-2015.”
BTC in the bottom region
Additionally, a study at the ratio of the current market value (MV) to realized value (RV) for BTC shows that the cryptocurrency may be in a bottoming phase. For as long as three weeks, the top cryptocurrency has struggled to break through $17,000. Most of the price movement has been sideways, creating an almost flat line in December 2022 for almost a week. The price of bitcoin as of this writing is $16,832, up 0.65% over the previous 24 hours, according to market monitoring site CoinMarketCap.