High exchange inflow shows correction possibility for bitcoin
The latest bull run has helped the global crypto market to rise by roughly $150 billion in just two weeks. However, as the heat grew, selling pressure rose nonetheless, triggering a notable downtrend.
According to data provided by CryptoQuant, there is still a possibility of a correction for the largest cryptocurrency, bitcoin (BTC), despite being down by 1.35% in the past 24 hours. Usually, the BTC price rise has helped the global crypto market cap to gain traction.
Moreover, the bitcoin exchange inflow mean has risen above the average 15 BTC mark to 18.45 coins, according to CryptoQuant. This means that the average amount of bitcoins in a transaction entering the exchanges is 18.45 BTC.
“When multiple exchange inflows with a mean above 15 triggers, there is a strong possibility of a correction within the next few hours.”
This situation could help short-term traders gain significant profits, which might inevitably trigger a downtrend in the crypto ecosystem.
Furthermore, bitcoin’s price has already gained traction over the past hour, marking a 0.7% rise in the mentioned timeframe. BTC is trading at $30,500 at the time of writing. The uptrend comes as the asset’s 24-hour trading volume surges by 3% and currently stands at roughly $13 billion.
The recent bull run comes as some of the world’s largest asset management companies have been trying to enter the crypto ecosystem. BlackRock, a firm with over $9 trillion under its oversight, and Fidelity, having $4.3 trillion under its management, have filed for bitcoin exchange-traded funds (ETFs).