Analysis: Bitcoin trading platform inflows are close to a multi-year low, and the current decline has not been confirmed by selling pressure

Comparing news, CryptoQuant analyst Axel Adler wrote that Bitcoin is currently trading around $64,000, and the price continues to weaken, but on-chain data shows that the trading platform's capital flow remains neutral, and there are no obvious signs of selling pressure.

The inflow volume of Bitcoin trading platforms in the past 30 days was about 60,000, about 24% lower than the average of the past year, and close to a historical low, indicating that the supply of potential sales entering the trading platform has not increased. At the same time, the trading platform's net traffic (Netflow) is about -1,300 bitcoins, which is close to the zero axis, indicating that inflows and outflows are basically balanced. The trading platform has neither significant chip accumulation nor liquidity contraction due to large-scale withdrawals.

Axel Adler said that if the inflow volume of the trading platform continues to rise and Netflow continues to be positive, it will mean that the selling pressure will increase; conversely, if Netflow continues to be negative and the Bitcoin balance of the trading platform drops significantly, it is expected that liquidity contraction will occur, which will support the price. Currently, neither scenario has occurred. The trading platform's capital flow data neither confirmed stronger selling pressure, nor did it create a tight supply situation sufficient to drive prices up.