As CEXs record net Bitcoin inflow, what is next?

Hi HODLers,

Since the beginning of December, the cryptomarket and especially Bitcoin has been in a range without much of a clear direction.

This has continued into January as we are still waiting to know if the Bullish momentum can be continued. On the Altcoins front it has been a very different story with some in high demand (Fantom, Solana, Harmony...) and some having less momentum (BNB, ETH, ...).

Below is one indicator to help us gauge what happens next for Bitcoin!

Net Transfer from/to Exchanges (90 days moving average)

Source

When these inflows are noticed, it usually means more whale/retail investors are putting their Bitcoin on Centralized Exchanges aiming to sell it against FIAT or other cryptocurrencies. Therefore weighting on BTC price.

This indicator has been turning into positive territory for the past few weeks. The last time it has been consistenly up was betweem April and August 2021 when the Bitcoin price did tank ot at least consolidated a little bit.

Below is also a comment from some analysts. As the US economy is strenghtening, USD should remain strong and we might also see a tappering. These 2 things combined could put pressure on risk-on assets (Cryptocurrencies, Stocks...)

According to FXStreet, the U.S. economy is expected to have added 400,000 jobs in December after November’s 210,000 additions. Strong data may strengthen the dollar and weigh over bitcoin and asset prices, in general.

Overall, I am still very bullish on Crypticurrencies but it sure seems we might consolidate in the near term. This is great as BUIDLer usually take over from speculators in these times and who knows what is next in store for us after DeFi, NFTs and GameFi :D.

Stay safe out there

Latest Analysis

Posted Using LeoFinance ^Beta