The post Bitcoin Bears to Pull the Price Further Down? Here’s What On-Chain Data Says appeared first on Coinpedia Fintech News
The world’s largest cryptocurrency by market capitalization, Bitcoin, is currently stuck in a crucial price range. BTC bulls are failing at every attempt to push the price above the significant $26,500 level. However, an analyst by the name Cheeky Crypto on YouTube, issued a warning and has said that there will be bearish times ahead.
He took a closer look at the on-chain data and what’s been happening with Bitcoin inflows and outflows. From January 1, 2023, until yesterday, May 24, a total of 3.9075 million Bitcoin have been deposited onto exchanges, while 3.8734 million Bitcoin have been withdrawn. He highlighted that there are now approximately 34,000 more Bitcoin on exchanges compared to the end of 2022.
He said, “Usually, this is seen as a bearish thing; we see this bearishly because we’ve seen price action pushing upwards, but normally when that happens, you’d see an increase in demand. When there’s an increase in demand, Bitcoin tends to flow away from the exchanges.”
According to him, this increase in Bitcoin on exchanges is seen as a bearish sign. Normally, when there is upward price action, there is also an increase in demand, leading to Bitcoin being moved away from exchanges into self-storage or cold storage for better security.
However, he also added that from the first of January 2023 until yesterday, approximately 1.9 million Bitcoin have been deposited onto exchanges, while 1.8 million Bitcoin have been withdrawn. This indicates that more Bitcoin is currently flowing onto exchanges.
Comparing this to previous bear markets, such as the same time period in 2019, he said that there was a higher volume of Bitcoin being deposited onto exchanges (7.2299 million) compared to the amount being withdrawn (7.261 million). This, according to him, suggests a more bullish environment, with a greater number of people buying and withdrawing Bitcoin from exchanges.