bitcoin has set a new all-time high (ATH) beyond the $104,000 mark over the past day, but on-chain data shows that investors are not yet willing to sell.
bitcoin Exchange Net Flow Has Remained Negative During Latest Rally
As explained by an analyst at CryptoQuant Quicktake <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67517b241b7d5223665b8e54-bitcoin-at-All-Time-High-Yet-Investors-Signal-Its-Still-Undervalued” target=”_blank”>mailbitcoin has continued to leave exchanges recently. The relevant on-chain metric here is the “Exchange Netflow”, which, as the name suggests, tracks the net amount of btc flowing into or out of wallets attached to centralized platforms.
When the value of this metric is positive, it means that investors are making net deposits in the exchanges. As one of the main reasons holders use these platforms is for selling-related purposes, this type of trend may have a bearish implication for btc.
On the other hand, the fact that the indicator is negative implies that a greater amount of currency outflows than inflows are occurring. This trend may be a sign that investors want to hold onto their coins for the long term, which can naturally be bullish for the asset's price.
Now, here's a chart showing the trend in net bitcoin exchange flow over the past few years:
<img src="https://technicalterrence.com/wp-content/uploads/2024/12/Bitcoin-Sets-New-ATH-Above-104000-But-Investors-Don39t-Want.png" alt="bitcoin net exchange flow” />
As shown in the chart above, the bitcoin Exchange net flow has seen significant negative spikes over the past month, suggesting that large withdrawals have occurred.
This wave of net outflow occurred even though the cryptocurrency has seen a massive run to new ATHs. The chart shows that this was not the case during the rally in the first quarter of this year.
Capital outflows were surely occurring back then, but there were also notable spikes in net inflows among them, implying that there was demand to sell the asset.
The recent negative net exchange flow has held for bitcoin during the latest rally above $100,000, a sign that investors are still not willing to part with their btc even at these high prices.
If this trend continues, this race may still have more room to run. However, it remains to be seen how long holders can remain calm.
In general, the higher investors' profits, the more likely they are to engage in a sell-off. So, as bitcoin continues to perform well, it may only be a matter of time before a big wave of profit-taking hits.
btc Price
bitcoin finally broke free from its recent consolidation phase with an increase of over 7% over the last 24 hours. The asset briefly surpassed the $104,000 mark on this rally, but its price has since seen a small pullback to $103,500.
x/T5GPMomU/” alt=”bitcoin price chart” />
