On-chain data shows the Bitcoin flow from spot exchanges to derivatives exchanges is currently painting a trend that has historically been bullish for the crypto\u2019s price.<\/p>\n
Bitcoin Spot To Derivatives Exchanges Flow Starts Sharp Decline<\/p>\n
As pointed out by an analyst in a CryptoQuant post, the BTC spot to derivatives flow may be hinting at a bullish outcome for the crypto.<\/p>\n
The \u201cspot exchanges to derivatives exchanges flow\u201d is an indicator that measures the total amount of Bitcoin moving from spot wallets to derivatives wallets.<\/p>\n
When the value of this metric rises, it means a higher number of coins are now being transferred to derivatives exchanges from spot as investors look to open futures positions.<\/p>\n
In the past, the indicator\u2019s value has usually moved faster whenever the price of the crypto has observed a large decrease.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin spot exchanges to derivatives exchanges flow over the last few years:<\/p>\n\n
The value of the metric seems to have been observing a sharp decrease in recent weeks | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the quant has marked the relevant portions of trend of the Bitcoin spot to derivatives flow.<\/p>\n
It looks like whenever the indicator has observed a sharp increase to high values followed by a plunge, the value of the crypto has started climbing up.<\/p>\n
Related Reading |\u00a0When Greed? Bitcoin Market Crushed Under One Full Month Of Fear<\/p>\n
During 2018, 2020, and 2021, this pattern formed shortly after the coin\u2019s price had a sharp decrease and hit a bottom.<\/p>\n
This trend may show that as Bitcoin approaches a bottom, whales start sending large amounts of the crypto to derivatives exchanges for opening long positions, hence creating a large spike on the chart.<\/p>\n
Just recently, the spot to derivatives flow\u2019s value sharply rose up, and now it seems to be plunging back downwards.<\/p>\n
Related Reading |\u00a0Bitcoin Bullish Signal: Exchange Reserves Hit New 4-Year Lows<\/p>\n
This could mean that the metric has once again started to form the same pattern, and if history is anything to go by, this can prove to be bullish for the crypto\u2019s price, at least in the short term.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $29.5k, up 1% in the last seven days. Over the past month, the crypto has lost 2% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
Looks like the value of the crypto has been going down over the last few days | Source: BTCUSD on TradingView<\/p>\n
Bitcoin seemed to be gaining some footing over the $30k level recently, but today the coin has once again slumped back below the mark.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
On-chain data shows the Bitcoin flow from spot exchanges to derivatives exchanges is currently painting a trend that has historically been bullish for the crypto\u2019s price.<\/p>\n
Bitcoin Spot To Derivatives Exchanges Flow Starts Sharp Decline<\/p>\n
As pointed out by an analyst in a CryptoQuant post, the BTC spot to derivatives flow may be hinting at a bullish outcome for the crypto.<\/p>\n
The \u201cspot exchanges to derivatives exchanges flow\u201d is an indicator that measures the total amount of Bitcoin moving from spot wallets to derivatives wallets.<\/p>\n
When the value of this metric rises, it means a higher number of coins are now being transferred to derivatives exchanges from spot as investors look to open futures positions.<\/p>\n
In the past, the indicator\u2019s value has usually moved faster whenever the price of the crypto has observed a large decrease.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin spot exchanges to derivatives exchanges flow over the last few years:<\/p>\n
The value of the metric seems to have been observing a sharp decrease in recent weeks | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the quant has marked the relevant portions of trend of the Bitcoin spot to derivatives flow.<\/p>\n
It looks like whenever the indicator has observed a sharp increase to high values followed by a plunge, the value of the crypto has started climbing up.<\/p>\n
Related Reading |\u00a0When Greed? Bitcoin Market Crushed Under One Full Month Of Fear<\/p>\n
During 2018, 2020, and 2021, this pattern formed shortly after the coin\u2019s price had a sharp decrease and hit a bottom.<\/p>\n
This trend may show that as Bitcoin approaches a bottom, whales start sending large amounts of the crypto to derivatives exchanges for opening long positions, hence creating a large spike on the chart.<\/p>\n
Just recently, the spot to derivatives flow\u2019s value sharply rose up, and now it seems to be plunging back downwards.<\/p>\n
Related Reading |\u00a0Bitcoin Bullish Signal: Exchange Reserves Hit New 4-Year Lows<\/p>\n
This could mean that the metric has once again started to form the same pattern, and if history is anything to go by, this can prove to be bullish for the crypto\u2019s price, at least in the short term.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $29.5k, up 1% in the last seven days. Over the past month, the crypto has lost 2% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
Looks like the value of the crypto has been going down over the last few days | Source: BTCUSD on TradingView<\/p>\n
Bitcoin seemed to be gaining some footing over the $30k level recently, but today the coin has once again slumped back below the mark.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-957","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=957"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/957\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=957"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}