On-chain data shows that crypto exchange Coinbase saw 38k BTC outflows shortly before bitcoin bounced back above $30k.
Bitcoin Netflow for Coinbase Pro Shows Deep Negative Spike
As pointed out by an analyst in a Cryptoquant post, outflows from the Coinbase Pro wallet yesterday measured around 38k BTC.
The relevant metric here is “netflow,” which measures the net amount of bitcoins entering or exiting the wallet of an exchange (which, in this case, is Coinbase Pro).
The value of the indicator is calculated by simply taking the difference between the inflow (ie, the number of coins coming in) and the outflow (the number of coins going out).
When the value of NetFlow is positive, it means that a net number of coins are just entering the exchange wallet.
Such a trend could, in the long run, be bearish for the price of crypto as investors usually deposit their coins into exchanges for the purpose of selling.
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On the other hand, the negative value of the indicator means that the investors are withdrawing the net amount at the moment.
Naturally, such values can be sharp to the value of the coin. Now, here is a chart that shows the trend in bitcoin netflows for Coinbase Pro over the past few days:
Looks like the value of the metric displayed negative values yesterday | Source: CryptoQuant
As you can see in the above graph, bitcoin netflow for Coinbase Pro saw some big negative spikes just yesterday.
These values ejected approximately 38k BTC out of the exchange’s wallet, and the withdrawal took place shortly before the crypto rallied back above the $30k level.
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This suggests that buying on Coinbase Pro may be a factor behind the latest pump in the price of the coin.
At the time of writing, the price of bitcoin is down 4% over the past seven days, around $30.1k. In the past month, the crypto has lost 14% in value.
The chart below shows the coin’s price trend over the past five days.
The value of the crypto seems to have come back above the $30k level | Source: BTCUSD on TradingView
A few days ago, bitcoin saw a sharp jump as its value fell below $30k once again. However, it was not long until the coin came back above its level.
Yesterday, the cryptocurrency once again found itself above $31k, but today the coin’s price has dropped again.
Nevertheless, BTC is still above $30k, which means that all recovery is not lost yet.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com