Bitcoin All Exchanges Netflow: 14SMA can be the key for following trends.
Interpreting Netflow data can help us understand the trend.
What is Bitcoin All Exchanges Netflow?
The movement of Bitcoin on exchanges can be understood by looking at the difference between coins flowing in (inflow) and coins flowing out (outflow). This difference is called netflow.
High inflows may indicate a downtrend in the spot market, while they may indicate high volatility in the futures market.
High outflows may indicate an uptrend in the spot market, while they may indicate low volatility in the futures market.
14 SMA: The Key to Short-Term Trends?
When we examine the Netflow data since the beginning of 2024, we can clearly see the impact of the 14SMA on trends.
On January 12, 2024, the 14SMA (+)2840 was in the local peak region. Then, as the 14SMA weakened, the price started to rise. We then witnessed the 14SMA crossing into negative territory and the price rising aggressively. However, as the 14SMA started to rise again, we observed a correction in the price.
As we can see from the examples above, following Bitcoin All Exchanges Netflow and its 14-day moving average can be key to understanding short-term trends.
Conclusion
We can see that the Netflow 14SMA is currently in positive territory, which could indicate that the correction is continuing.
In addition, we observe that the 14SMA reached (+)1481 on May 7, 2024. When we look at the current data, we see that the 14SMA has pulled back to (+)1096 points. The price might go up again if 14SMA drop stops soon.
Thank you for reading.
Written by burakkesmeci