On-chain data shows Bitcoin exchange rate transactions are now at a 4-year low, indicating that the bottom may be here.
Bitcoin MA Exchange Trading 30-day Deposit Reduced – On-Chain
As one analyst pointed out in an article on CryptoQuant, the current metric level is the same as in the first quarter of 2019. “Exchange Deposit Transactions” is an indicator that measures the total number of Bitcoin transfers that go to centralized exchanges.
The difference between this metric and the more popular exchange influx is that the latter indicator tells us the total amount of BTC deposited on exchanges, i.e. the combined sum of the value of each transaction going to the exchanges. exchanges (rather than their total number), which is a value that can be inflated by a few whales and is therefore not representative of the trend followed by the whole market (especially retail investors). But since the investment business focuses on the large number of individual transfers rather than their income, the metric can provide a more accurate description of whether an investor is sending a yield. Money and exchange or not for time.
Since one of the main reasons for investors to invest in exchanges is for sales, the high price of this indicator can have a bearish effect on the price of crypto. On the other hand, low prices indicate that few investors are applying selling pressure now.
The chart below shows the trend of the 30-day moving average (MA) bitcoin exchange rate over the past few years: As the graph shows, MA Bitcoin exchange rate 30-day deposit transaction business has been decreasing for some time recently and reached very low values. The current level is the lowest that the show has seen since the first quarter of 2019, four years ago.
At the time, the bear market of this cycle was in its final stage, because property prices were at cyclical lows. This means that the appetite for investing coins in exchanges, and therefore selling BTC, is at an all-time high.
This may mean that the selling pressure may be over in the market for now, and the bottom may be close, if not already, for the current BTC trend. However, the quant in the post also mentions that the underlying trend may be here but does not rule out the possibility that there may still be a final stop for Bitcoin.
On-chain As of this writing, Bitcoin is trading around $16,700, up 1% over the past week.
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