Bitcoin Price Is An ‘Opportunity,’ Technical Analyst Tells Benzinga: Watch These Indicators For Signs Of A Price Surge
The cryptocurrency market appears to be gearing up for its next upward trend as several key indicators, including Bitcoin‘s (CRYPTO: BTC) Exchange Flow Multiple, show signs of accumulation.
What Happened: The Exchange Flow Multiple (30-day/365-day) – an indicator measuring the ratio between short-term and long-term inflows and outflows of Bitcoin on exchanges – has reached its lowest point this year, suggesting decreased volatility in Bitcoin exchange flows, according to CryptoQuant.
A decline in this indicator points to a significant drop in short-term inflows and outflows, which is often a reflection of investors accumulating assets in anticipation of future price increases.
Historically, such patterns align with the early stages of a bull market.
In recent data, this low Exchange Flow Multiple mirrors the values observed before the market rally in early 2023, hinting that the market might be preparing for another surge.
Two factors are contributing to the current downward trend in the Exchange Flow Multiple. First, long-term investors, or “HODLers,” continue to hold their assets, reducing trading volumes on exchanges.
This behavior is typical of experienced participants in the early stages of a bull market who prefer not to exit …
About The Author
