As Bitcoin creates new ATH, Netflow hints that BTC will explode here

The history of the Bitcoin net flow indicator may indicate that as cryptocurrencies generate new ATH, the current market is ready for the next major price increase.

Before the price rises sharply, Bitcoin Netflow has historically been close to zero

As an analyst explained in CryptoQuant postal, There seems to be a relationship between BTC net flow and upward price fluctuations.

Bitcoin Network traffic The indicator is defined as the difference between inflow and outflow, and it shows the net amount of cryptocurrency entering or exiting a centralized exchange.

When the indicator takes a negative value, it means that more investors have withdrawn their tokens than deposit investors. The continuation of this trend may be bullish for BTC, as holders usually take their cryptocurrency from the exchange to hold or sell it through OTC trading.

On the other hand, when there are more tokens flowing into the exchange than tokens flowing out, the net flow is shown as a positive value, which may be bearish because it means that investors send bitcoins to the exchange to withdraw fiat currency or buy Altcoins.

Now, this is a chart showing the trend of indicator values ​​in the past year:

The relation between BTC price and the netflows | Source: CryptoQuant

In the image above, the analyst compares the behavior of the indicator with the Bitcoin price. Obviously, before the price rises sharply, the net flow always touches the zero mark.

A net flow value of zero means that investors who withdraw tokens from the exchange are balanced with investors who put in tokens.

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This trend seems to have been followed during the bull market earlier this year, and so far the current rebound has followed.

Currently, the net flow is exactly zero, which makes the current point suitable for another sharp rise. And it seems to have already started…

The price of BTC hit a record high!

Bitcoin has reached New ATH Today, at the time of writing, the cryptocurrency is trading at $66,000. The chart below shows the trend of BTC prices in the past 24 hours.

Related Reading | Ethereum’s breakthrough of $4,000, a record high is inevitable?

Bitcoin price chart

BTC breaks past $65k to make a new ATH | Source: BTCUSD on TradingView

Bitcoin is now entering uncharted territory, because every rise now will result in a new ATH. Knowledge of past bull markets implies that volatility may now soar, and cryptocurrencies will experience more severe price fluctuations. If network traffic can pass, then BTC looks ready to explode from this point.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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