“The relationship between bitcoin price and flows is pretty apparent. Price rallies were typically accompanied by sizable inflows to exchanges as individuals looked to take profit,” said independent crypto research and analysis firm Delphi Digital in an analysis shared with TNW.
Bitcoin Flowing In and Out ‘Relatively Less’
Folks looking to earn profits off their bitcoin holdings can let out a sigh of relief. As per Delphi Digital’s analysis, there’s been less bitcoin flowing in and out of cryptocurrency exchanges lately; at least compared to figures registered in the month of June and July.
As a matter of fact, the amount of bitcoin deposited by traders on major cryptocurrency exchanges is equal to BTC withdrawn, as per the analysis.
The firm concurs that fewer Bitcoins were sent to these exchanges last month, i.e. August. This in turn, has resulted in no significant impact on price. BTC price has been laying low in a prolonged consolidation post the June parabolic run. Therefore, Delphi analysts predict a ‘significant move’ for the crypto asset in the near future. The firm added:
A breakout above the $11,000 – $11,200 range for BTC could be the catalyst for another strong move higher. Conversely, a break below ~$9,400 may signal more pain ahead in the near term, though we’ve seen significant buying pressure in this range, evident in Bitcoin’s quick bounce off these levels in mid-to-late July and the end of August
Do you think Bitcoin flows dictate BTC price? Let us know in the comments below.
Images via Shutterstock, Delphi Digital, Twitter: @eliasimos
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