If you thought the Bitcoin wave was over, the new metrics might require you to think again. The $19850 price peak has not been retested, but in the long term, new metrics are suggestive of a promising new year. On-chain analytics data platform CryptoQuant is back with bullish data on Bitcoin. As of this week, the average inflow to exchanges has reached an eight-month high, this was last seen in March when inflow hit its lowest.
According to the data, this is a long-term bullish indicator for Bitcoin. As explained by CryptoQuant, whales are riding on the back of retail investors by depositing sizeable amounts of Bitcoin into exchanges, but for the sole purpose of storing. The strategy is, however, to sell the stored Bitcoins when the retail investors’ transaction activities are heated on exchanges.Â
âWhales benefit from retail investors. Ironically, if you see the low frame, the Exchange inflow Mean is a bullish signal. Whales are depositing to exchanges, but they donât sell BTC. The time they sell coins is when retail investors are active on exchanges.â
$BTC All Exchanges Inflow Mean(7d MA) hit the eight-month high since March when the price hit the year-low.
— Ki Young Ju 죟기ě (@ki_young_ju) December 9, 2020
Very bullish in the long-run.
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Adding that this is a relevant validator for the âbuy-the-dip,â concept, as CryptoQuant data says;
âThe signal can also be used as a buy-the-dip indicator. Whales deposit BTC to exchanges a lot after the plummet, but they eventually realize that itâs too low price to sell BTC.â The reference to buying the dip couldnât have come at a better time if youâve been following the market sentiments for the last month.
Usually, bear markets are favorable in the long term because a market bounce back psychologically follows. For Bitcoin, which is still yet to lose steam in the market as far as uncertainty is concerned, every downtrend can be a strategic entry point for traders.
BTCUSD Chart By TradingView
At Bitcoinâs current price of $18,100, a dip could send BTC hanging below the $17,000 price mark, this could lead to buyers selling their coins further down the road and this could widen the entry point for persisting traders and investors.
After Bitcoin dipped, market manipulation is being perceived and new data is hinting that a selloff is taking place. Starting with on-chain market activities, Bitcoin miners’ index position has hit a new three-year high, this is the result of miners allegedly selling off their Bitcoins to OTC markets or exchanges. Speculations from commentatorsâ hints that this could inspire mild bearish trends as institutional investors are the customers.Â
Community members are speculating everything from future market manipulation to a possible change in market dynamics due to institutional investment interest. The analyst WhalePanda also shared his take regarding this topic.
But just @Grayscale alone is buying up way more coins than that are being currently mined.
— WhalePanda (@WhalePanda) December 10, 2020
And then we still have Square, Paypal and of course Microstrategy.https://t.co/BobbBYboxK
