- Bitcoin recently saw significant inflows that reached a monthly high.
- Despite this, BTC outflows still dominated the exchange flow.
Bitcoin [BTC] has received a lot of attention recently, mainly due to its ongoing downward price trend. In light of this downward trend, recent data indicates that the amount of Bitcoin deposited on exchanges reached a monthly peak. But how does this inflow compare to Bitcoin’s outflow from exchanges?
Read Bitcoin (BTC) Price Forecast 2023-24
Between Bitcoin inflows and outflows
A recent update of Glassnode Alerts stressed that Bitcoin inflows across all exchanges reached a new monthly peak on August 22. Then the recorded influx surpassed 1,300.
As an extension of the analysis, a comprehensive review of cumulative inflow volume, according to Glassnode, showed that total inflow exceeded 32,000. These numbers would obviously imply a substantial influx of BTC to the exchanges, pointing to a potential sell-off.
Source: Glassnode
However, to get a more comprehensive perspective, it was necessary to examine the outflow volume. According to Glassnode’s outflow volume data, outflow exceeded 33,000 at the time of writing.
This meant a small increase in the outflow compared to the inflow. The implication here is that there currently seems to be a state of equilibrium between inflows and outflows, negating the narrative of a widespread sell-off.
Source: Glassnode
Bitcoin Netflow Analysis
Examining Glassnode’s netflow chart provided a clearer understanding of the dynamics of Bitcoin movement across all exchanges. The chart showed a predominant pattern of BTC outflows starting around August 18.
This observation indicated that, despite the ongoing downward trend, more BTC left the exchanges on a daily basis than the amount deposited.
Source: Glassnode
This breakdown of the total inflow and outflow volumes initially assessed confirmed the lack of a frantic sales scenario, at least for the time being.
BTC hits RSI low in four months
Examining Bitcoin’s daily time chart revealed a sustained downtrend that showed no signs of abating. Bitcoin has experienced nine consecutive days of falling prices at the time of writing. The current trade value hovered around $26,130, with the price drop less than 1%.
Source: TradingView
How much is 1.10.100 BTC worth today?
Also, the Relative Strength Index (RSI) indicated an oversold status at the time of writing. Notably, this was the first instance in more than four months that BTC had reached such a level on its RSI.
Despite the challenging conditions, a bright spot emerged in the current price level, presenting a potential opportunity for price correction.