On-chain data shows the crypto exchange Coinbase Pro has received a large amount of Bitcoin inflows today, a sign that could prove to be bearish for the coin’s price.
Coinbase Pro Observes Bitcoin Exchange Inflows Of About 3.5k BTC
As pointed out by an analyst in a CryptoQuant post, Coinabse Pro has today received big inflows from supply not moved since at least six months ago.
The “exchange inflow” is an indicator that measures the total amount of Bitcoin moving into wallets of a centralized exchange (which, in this case, is Coinbase Pro).
When the value of this metric spikes up, it means a large number of coins are entering into the exchange’s wallets right now.
Such a trend can be bearish for the crypto’s price as investors usually deposit their coins to exchanges for selling purposes.
Related Reading | Analysts Believe Market Reversal Imminent, Gnox (GNOX) Could Lead Bitcoin (BTC) and Ethereum (ETH) In Uptrend
Prolonged large inflows can be a sign of dumping from whales. On the other hand, low values of the indicator suggest a normal amount of selling is going on in the market right now.
This kind of trend can be either bullish, or neutral for Bitcoin, depending on whether investors are also withdrawing their coins or not.
Now, here is a chart that shows the trend in the BTC inflows for Coinbase over the past few months:
Looks like the value of the indicator has been elevated recently | Source: CryptoQuant
As you can see in the above graph, the Coinbase Pro Bitcoin exchange inflows for the different age groups is shown.
“Age” here corresponds to how many days the investors who deposited these coins had been holding their BTC for.
Related Reading | “Bitcoin Is The Only One I’m Willing To Say Is A Commodity”, SEC Chair Says On Crypto Regulation
It seems like the inflows had a spike on the exchange today, and the largest contribution was from holders belonging to the 6 to 12 months cohort.
Around 3.1k BTC was deposited by this group over the last 24 hours, with a further 200 BTC each coming from the 12-18 months and 3-5 years cohorts.
This kind of selling from long-term holders may imply that Bitcoin could see some more decline in the near future.
BTC Price
At the time of writing, Bitcoin’s price floats around $21k, down 1% in the last seven days. Over the past month, the crypto has lost 26% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have bee moving sideways during the last few days | Source: BTCUSD on TradingView
Featured image from paul silvan on Unspash.com, charts from TradingView.com, CryptoQuant.com