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CryptoQuant Analyst: Bitcoin Falls Below $, We May See a Rally Soon! - Coin Bulletin
Analysts believe that Bitcoin has given a strong accumulation signal and this could trigger a short-term rally.
According to the latest analysis shared by CryptoQuant analyst, while the Bitcoin price fluctuates between $90,000 and $105,000, the 30DMA exchange inflow/outflow ratio gave a strong accumulation signal.
The recent movements in the Bitcoin market showed that the amount of Bitcoin exiting exchanges exceeded the amount entering, according to data shared by CryptoQuant analyst. When this ratio falls below 1, expectations of an increase in the markets rise. This is because it indicates that investors prefer to withdraw their Bitcoins from exchanges and opt for long-term storage.
High demand for Bitcoin could support price increase
Historically, Bitcoin usually moves to the short-term upside during periods when this ratio enters the high-demand zone. The CryptoQuant analyst noted that the current rates paint a similar picture. However, the analyst also pointed out that some of the major outflows may have been due to the influence of institutional investors and over-the-counter (OTC) transactions.
According to data from CoinGecko, it is trading in the $96,339 range, down 0.8% at the time of writing.