Bitcoin exchange outflows are reappearing in the 2023 pattern, with whales buying the dip as retail investors panic sell.

Source: Cointelegraph Original: "Bitcoin Exchange Fund Outflows Reappear in 2023 Pattern, Whales Are Buying the Dip Amid Retail Panic Selling"

Key points:

With the depletion of user inflow this year, Bitcoin (BTC) exchanges are signaling the end of the 2022 crypto bear market.

Data from the blockchain analytics platform CryptoQuant shows that the average net flow of exchanges has reached a new high in two years.

Bitcoin analysis focuses on "asset re-accumulation"

The trading price of Bitcoin may be much higher than at the beginning of 2023, but the demand for Bitcoin from exchange users reminds one of the start of a bull market.

CryptoQuant revealed that the 100-day simple moving average of the net flow of exchanges (SMA) has recently reached its lowest value in two years.

"This basically indicates that the outflow of Bitcoin from the exchange has been the highest since that date," commented contributor CryptoOnChain in its "Quicktake" blog post on April 23.

"A review of historical patterns suggests that this may indicate investors are re-accumulating assets."

Bitcoin Exchange Network Traffic 100-Day SMA Source: CryptoQuant

Net flow statistics indicate that the outflow from the exchange exceeds the inflow, reflecting that user demand surpasses the willingness to send BTC to exchange accounts for potential sales.

As reported by Cointelegraph, the overall exchange BTC balance is at its lowest level in years.

CryptoQuant shows that reserves reached 2.535 million BTC at the beginning of April, a decrease of over 7% from 2.74 million BTC at the beginning of the year.

Bitcoin exchange reserves. Source: CryptoQuant

Whales are buying the dip, retail investors are leaving the market.

Elsewhere, despite smaller retail investors selling off, larger Bitcoin entities increased their supply throughout April.

"Since March, despite the price drop, whales (balances of 1k-10k) have been actively accumulating," cryptocurrency analyst Miles Deutscher pointed out on X this week, along with data from CryptoQuant.

"Every time the price drops, whales accumulate during retail panic selling."

Bitcoin 1K BTC+ balance data Source: Miles Seutscher/X

The research company Santiment drew similar conclusions about entities holding at least 10 BTC, referring to them as "key stakeholders".

According to X, "The main stakeholders of Bitcoin include wallets holding 10 to 10K BTC, which currently hold 67.77% of the total supply of the highest market cap assets in cryptocurrency."

"During the fluctuations in April, these wallets continued to accumulate, having increased by over 53.6K BTC since March 22."

Bitcoin 10 BTC+ balance data Source: Santiment/X

This article does not contain investment advice or recommendations. Every investment and trade involves risk, and readers should conduct their own research before making decisions.

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