Bitcoin Sets New ATH Above $104,000, Yet Investors Don’t Want To Sell
Bitcoin has hit a new all-time high (ATH) over the past day, surpassing the $104,000 mark, but on-chain data shows investors remain reluctant to sell.
Bitcoin net trading flows remain negative during recent rally
As one analyst explains in CryptoQuant Quicktake postalRecently, Bitcoin has continued to leave exchanges. The correlation on-chain indicator here is “exchange network traffic”, as the name suggests, it tracks the net amount of BTC entering or exiting wallets connected to centralized platforms.
When the value of this indicator is positive, it means that investors are making net deposits to the exchange. Since one of the main reasons why holders use these platforms is for sales-related purposes, this trend could have a bearish impact on BTC.
On the other hand, a negative value for this indicator means that foreign exchange outflows are higher than inflows. This trend could indicate that investors want to hold onto their tokens for the long term, which would naturally be positive for asset prices.
Now, the chart below shows the trend of Bitcoin transaction net flow over the past few years:
As shown in the chart above, Bitcoin transaction net flow has observed a significant negative spike over the past month or so, indicating that some large withdrawals have occurred.
This surge of net outflows comes despite the fact that cryptocurrencies have been flocking to new ATH. This chart shows that wasn’t the case during the rebound in the first quarter of this year.
Outflows certainly occurred at that time, but there were also clear peaks in net inflows between them, which meant there was demand to sell assets.
Recently, Bitcoin’s net transaction flow has been negative latest rally Above $100,000, this shows that even at such a high price, investors are still unwilling to part with their BTC.
If this trend continues, this run may have more room to run. However, it remains to be seen how long the holders can remain silent.
Generally speaking, the higher an investor’s profits, the more likely they are to participate in an investment. massive sell-off. Therefore, as Bitcoin continues to perform well, it may only be a matter of time before massive profit-taking begins.
bitcoin price
Bitcoin has finally emerged from its recent consolidation phase, surging more than 7% in the past 24 hours. The asset briefly surpassed the $104,000 mark during this rally, but its price has since retraced slightly to $103,500.
