Bitcoin on the verge of a rally due to weak activity on cryptocurrency exchanges

CONTENT

  • Bitcoin tries to get closer to overcoming the $ 12,000 level again

  • Weak network activity of bitcoin on exchanges could mean a new bullish trend, according to CryptoQuant

  • Many large companies have long entered the bitcoin market, says Willie Wu

International consortium of news organizations developing transparency standards.

Bitcoin network activity indicator on cryptocurrency exchanges signals the upcoming rally of the leading cryptocurrency

Bitcoin is getting closer to a new rally. At least this is the conclusion reached by analysts of the CryptoQuant service, having studied the 30th moving average of the bitcoin flow on the exchanges..

The ratio of bitcoin activity on exchanges to the price in 2020. Source: cryptoquant.com

Analysts have found that the activity of the largest cryptocurrency by market capitalization on exchanges has already reached an annual low. At the same time, almost every time the indicator went negative, a bullish trend was formed.

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The ratio of bitcoin activity on exchanges to the price in 2017. Source: cryptoquant.com

The last time the most often negative bitcoin flow on exchanges was observed in mid-2017, before the formation of a historic rally.

Having traced the activity of the inflow and outflow of bitcoin on the exchanges, analysts came to the conclusion that the recent collapse of the cryptocurrency to 10,000, presumably, became one of the catalysts for the new growth of the cryptocurrency:

“In most cases, a negative exchange flow signals the formation of a bullish trend.”.

According to well-known analyst Willie Wu, the recent return of bitcoin to the level of $ 11,300 amid investments by Square (bought for $ 50 million BTC) and MicroStrategy (bought for $ 420 million BTC) is only the beginning of an upward trend.

Source: glassnode.com

Referring to the indicators of active bitcoin addresses, Wu believes that the market has long been flooded with “unnamed” individuals with high capital, but they do not advertise this..

Bitcoin on the verge of a rally due to weak activity on cryptocurrency exchanges

Silence mode

The BeInCrypto editorial staff previously reported about weak trading activity. According to data for September, almost all major crypto trading platforms dropped by at least 10% in trading volume. The largest losses were recorded at Bybit (-30.8%) and BitMEX (-30.7%).

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However, even with the drop in trading, some exchanges were able to rate better results than others. Cryptocurrency exchange Binance, for example, was able to overtake the previous leader Huobi, as well as cryptocurrency exchange OKEx.

Source: coingecko.com

Meanwhile, Bitcoin has completed its monthly consolidation phase and formed a bullish breakout of the symmetrical triangle, within which the price has been consolidating since September 8th. Bitcoin returns to its attempt to break through $ 12,000, which it last made on September 1.

Calls for Bitcoin Price Rally Grows as $600M Enter Crypto Exchanges

At the time of this writing, the price of BTC / USDT is $ 11,364.

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Bitcoin on the verge of a rally due to weak activity on cryptocurrency exchanges
Bitcoin on the verge of a rally due to weak activity on cryptocurrency exchanges
Bitcoin on the verge of a rally due to weak activity on cryptocurrency exchanges

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