Bitcoin is now back above the $20k mark after observing some sharp uptrend over the past day, but is this pump sustainable? Here’s what on-chain data has to say about it. Bitcoin All Exchanges Netflows Remain Muted Following The Price Rise As explained by an analyst in a CryptoQuant post, the BTC exchange netflows can help us know whether this short-term uptrend is sustainable or not. The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all centralized exchanges. The metric’s value is simply calculated by taking the difference between the inflows and the outflows. When the indicator has a positive value, it means investors are depositing a net number of coins to exchanges right now. Since these holders may be sending the BTC to exchanges for selling purposes, this kind of trend could have bearish implications on the price of the crypto. Related Reading: This Bitcoin On-chain Retest Can Change Market’s Course, Here’s How On the other hand, negative values of the netflow imply the outflows are currently overwhelming the inflows. Such a trend, when prolonged, can be bullish for the coin as it may be a sign of accumulation from holders. Now, here is a chart that shows the trend in the Bitcoin all exchanges netflow over the last couple of weeks: Looks like the value of the metric saw a spike about a week ago| Source: CryptoQuant As you can se...
