Originally published on: September 30, 2024
A key indicator tracking Bitcoin exchange flow volatility is approaching its lowest point of the year, reminiscent of levels seen before a significant rally in 2023.
According to CryptoQuant analyst Axel Adler, the current low indicator levels could indicate that the market is gearing up for a potential upward trend. This suggests that Bitcoin investors may be anticipating a price increase in the near future.
Adler highlighted the correlation between low exchange flow values and previous rallies in Bitcoin’s price, such as the 46% surge seen in April 2023 when Bitcoin reached $30,312.
Additionally, short-term inflows and outflows of Bitcoin, held for less than 30 days, are significantly lower than long-term flows, indicating decreased volatility in exchange flows. This trend could imply that investors are holding onto their Bitcoin in anticipation of future price gains.
Meanwhile, analysts such as Julio Moreno and Maartuun noted increasing short positions and open interest behind recent price declines in Bitcoin and Ethereum. This dynamic could set the stage for heightened market volatility and potential price fluctuations.
Despite uncertainties surrounding the possibility of Bitcoin reaching six figures by year-end, analysts suggest that a return to its current all-time high remains a feasible target.
As of September 30, Bitcoin experienced a 3.22% price drop over the past 24 hours, trading at $63,531 according to TradingView data.
Disclaimer: This article does not provide investment advice. Readers are encouraged to conduct their own research before making investment decisions. Stay informed about the latest developments in the cryptocurrency market by subscribing to our Markets Outlook newsletter.
