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Bitcoin Insights For Ongoing Market Volatility - Price Prediction.
2020-09-23 | Selina Mathew
Key Bitcoin [BTC] insight metrics have flipped bearish within this week, suggesting that the leading crypto asset by market capitalization might extend its recent price losses in the short term.
Earlier on Tuesday, the total inflow of bitcoin to exchanges measured by the entire change in exchange balances was around 36,800 BTC - the most important single-day rise since the markets crash earlier on 13th March, consistent with Chainalysis.
“Since 20th Sept., the total daily inflow of bitcoins to exchanges are increasing & trade intensity has been declining," Philip Gradwell, an economist at Chainalysis, revealed.
This, he said, "indicates a weakening market."
The uptick in net inflows represents a rise in selling pressure since investors are typically moving their coins from their wallets to exchanges once they see a possible requirement to liquidate their holdings.
Moreover, bitcoin's trade intensity, which measures the number of times an inflowing coin is traded, fell to a one-year low of 1.75 recently on Tuesday.
That's a sign there have been not enough buyers to soak up the spiking inflow of coins.
Trade intensity has declined from 4.93 to 1.75 within the past 3-Days. While explaining further, Gradwell added:
"There may be a lot of inventory building on exchanges & fewer buyers willing to trade. These conditions tend to steer to further price drops.”
