Bitcoin set a new all-time high (ATH) of over $104,000 in the past day, but on-chain data shows that investors are still reluctant to sell.
The net flow of Bitcoin to exchanges remains negative during the recent rebound.
As an analyst explained in a CryptoQuant Quicktake article, Bitcoin has recently been flowing out of exchanges continuously. The relevant on-chain metric here is 'net exchange flow', which tracks the net amount of BTC entering or leaving wallets connected to centralized platforms.
When the value of this indicator is positive, it means that investors are making net deposits to exchanges. Since one of the main reasons holders use these platforms is for sales-related purposes, this trend may have a bearish impact on BTC.
On the other hand, a negative value for the indicator means that the outflow of foreign exchange is greater than the inflow. This trend may indicate that investors wish to hold onto their currency for the long term, which naturally would have a positive impact on asset prices.
Now, here is a chart showing the trend of Bitcoin's net trading flow over the past few years:
As shown in the figure above, the net flow of Bitcoin to exchanges has shown a significant negative growth over the past month or so, indicating that some large withdrawals have occurred.
Despite the significant rise of cryptocurrencies to new highs, this phenomenon of net outflow persists. The chart shows that this was not the case during the uptrend in the first quarter of this year.
There was definitely an outflow of funds at that time, but there was also a notable peak in net inflow, indicating a demand to sell assets.
In Bitcoin's recent rebound above $100,000, its recent net flow to exchanges has remained negative, indicating that even at such high prices, investors are still unwilling to part with their BTC.
If this trend continues, there may still be further room for this rally. However, it remains to be seen how long holders can remain silent.
In general, the higher the profits for investors, the greater the likelihood of participating in large-scale sell-offs. Therefore, as Bitcoin continues to perform well, a wave of profit-taking may just be a matter of time.
BTC price
Bitcoin has finally broken free from its recent consolidation phase, rising over 7% in the past 24 hours. During this rebound, the asset briefly surpassed the $104,000 mark, but its price has since slightly retreated to $103,500.
