Bitcoin analytics are pointing to changes in investor behavior, suggesting market movements. Bitcoin reserves on spot exchanges, which had been declining for weeks, have increased by more than 20,000 bitcoins, according to CryptoQuant IT Tech analyst.
Net inflows increased by 15,800 BTC across all exchanges. The divergence from the consistent outflow pattern of previous weeks suggests that traders may be planning for more activity on exchanges.
Explaining the high exchange reserves and positive net flows
Increased Bitcoin reserves on exchanges may indicate a desire to trade or sell, creating selling pressure. Good flows indicate that Bitcoin is entering exchanges faster than it is leaving.
Such trends have historically been associated with market volatility. The long-term pattern of accumulation remains unchanged, but these recent flows suggest that investors may be preparing for gains or market declines.
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If reserves and net inflows increase, the price of Bitcoin may decline in the short term. This reversal highlights the need to monitor exchange activity for signals of market sentiment.
Another indicator of Bitcoin buying pressure
Despite the evidence of price activity, CryptoQuant analyst Burak Kesmeci noted the opposite: Binance traders’ buying volume reached $8.3 billion.
This indicator monitors the total buying volume of “traders” on Binance – market players who acquire Bitcoin at current market prices using liquidity. An increase in the volume of traders buying indicates investor interest and buying pressure.
Kismiji noted that Binance traders’ buying volume has been making higher lows for 60 days. Despite market corrections, this pattern shows a continuation of buying.