Santiment has detected a bullish signal that could impact the price of bitcoin from exchange flow balances.
📈 #Bitcoin got up to a 3-week high $40.8k a few hours ago, and the upward push appears to be aided by a healthy flow of funds being moved off exchanges today. When flow balance heads into the negative like it consistently did Monday, it's a #bullish sign. https://t.co/fP7yfPCpQS pic.twitter.com/XGHRHqYUmm
— Santiment (@santimentfeed) June 15, 2021
Yesterday saw the price of BTC hit a new three-week high of $40,800.
The price had not risen above $40,000 since 28 May, and the last time it had been above that figure for a while was between 20 and 21 May.
Moreover, this upward momentum seems to have been helped by a flow of funds out of the exchanges.
Santiment publishes a chart that clearly shows a sharp increase in these BTC outflows from exchanges in recent days, whereas in previous days they were virtually non-existent.
In fact, there had been strong outflows as early as 7 June, and indeed the price was back above $35,000, but in the following days, there had been inflows, with a peak on 10 June, before the price started to fall after hitting $37,500.
Notably, the recent spike in BTC outflows from exchanges occurred just yesterday as the price climbed back up towards $40,800.
Bitcoin flow from exchanges is a bullish signal
In this regard they state:
“When flow balance heads into the negative like it consistently did Monday, it’s a bullish sign”.
Indeed as of Sunday 13 something seems to have happened in the bitcoin markets.
In fact, in the previous days, the price was sideways between $35,000 and $36,000 without showing any particular signs of volatility.
However, on Saturday 12 it dropped well below $35,500 and then touched $34,950 the following day.
The fact that it had tried to break through the $35,000 resistance, without succeeding, seems to have provoked a rebound, as the same day the price jumped to $39,000, clearly breaking through the $38,000 resistance which had held out all month.
The price then continued to rise, and on Monday 14, the price climbed to $40,800, thanks in part to the outflow of BTC from exchanges.