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As Bitcoin Makes New ATH, NetFlow Hints That BTC Will Explode Here

The history of the Bitcoin Netflow indicator may suggest that the current market is ready for the next major price swing as the crypto forms a new ATH.

Bitcoin NetFlow Historically Nears Zero Before Major Price Rise

As explained by an analyst in a Cryptoquant post, it appears that there is a correlation between BTC netflow and price volatility.

The Bitcoin Netflow Indicator is defined as the difference between inflow and outflow, and shows the net amount of crypto entering or exiting centralized exchanges.

When the metric assumes a negative value, it means that more investors are withdrawing their coins than the depositors. Continuing such a trend could be bullish for BTC as holders usually close their crypto exchanges to sell or sell via OTC deals.

On the other hand, when more coins are flowing into exchanges than are flowing into exchanges, netflow shows positive values, which can be bearish because it means investors can withdraw their bitcoins to fiat currency or altcoins to exchanges. Sending to buy.

Now, here is a chart that shows the trend in the price of the indicator over the past year:

bitcoin netflow

The relation between BTC price and the netflows | Source: CryptoQuant

In the above graph, the analyst has marked the behavior of the indicator against the price of bitcoin. As is clear, netflow always touches the zero mark just before a big price move.

A net inflow value of zero means that investors withdrawing their coins from exchanges are balanced by those who insert them.

Related Reading | Bitcoin futures ETF trades over $1 billion in first day, higher than expected

This trend seems to have been followed during the first bull run of the year, and so far the current rally has followed suit.

Right now, net flow is at zero, which makes the current point apt to take another big step. And it seems that it has already started …

BTC Price Makes New All-Time High!

Bitcoin has reached a new ATH today as the cryptocurrency is trading at $66k at the time of writing. The chart below shows the price movement of BTC over the past 24 hours.

Related Reading | Ethereum Breaks $4,000, All-Time High Is Inevitable?

bitcoin price chart

bitcoin price chart

BTC breaks past $65k to make a new ATH | Source: BTCUSD on TradingView

Bitcoin is now heading into unknown territories because now every move will result in a new ATH. Knowledge from past bull markets indicates that volatility may now increase and the cryptocurrency price will experience significant volatility. And if NetFlow is anything to go by, BTC is set to explode by this point.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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