Bitcoin Sets New ATH Above $104,000, Yet Investors Don’t Want To Sell

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As a seasoned researcher with years of experience in the cryptocurrency market, I find myself constantly amazed by the unpredictable and intriguing nature of Bitcoin. The latest surge beyond $104,000 is a testament to its resilience and potential, but the ongoing negative Exchange Netflow has me scratching my head.

As an analyst, I’ve observed an intriguing trend: Yesterday, Bitcoin surpassed its previous record price of $104,000 and set a new all-time high. However, digging deeper into the on-chain data, it appears that investors are holding onto their Bitcoins tightly, indicating a reluctance to sell at this current level.

Bitcoin Exchange Netflow Has Remained Negative During Latest Rally

From my perspective as an analyst, I’ve observed a recent trend in Bitcoin: it’s been moving away from exchanges. The key on-chain metric we’re focusing on here is “Exchange Netflow,” which monitors the net balance of Bitcoin entering or leaving wallets connected to centralized platforms.

If the level of this indicator is more than zero, it signifies that investors are generally adding funds (net deposits) to the trading exchanges. Since a significant portion of users access these platforms primarily for selling, such a pattern might suggest a potentially bearish outlook for Bitcoin (BTC), meaning prices could decrease.

Conversely, when the indicator shows a negative value, it suggests that more coins are being sent out of the exchange than coming in. This could indicate that investors are choosing to hold onto their coins for a longer period, which might be perceived as positive and potentially boost the asset’s price over time.

Currently, I’d like to share a graph displaying the pattern of Bitcoin Exchange Netflow over the past two years:

The graph shows that the Bitcoin Exchange Netflow has experienced substantial drops over the past month, hinting at a series of major withdrawals taking place.

Despite this cryptocurrency reaching all-time highs (ATHs), an outflow trend persists, as can be seen in the graph. However, the chart indicates that such outflows were not prevalent during the surge in the first three months of the year.

Back then, there were indeed periods of outflow, but there were also significant surges of net inflow in between, which suggests a demand for selling the asset, as it indicates people were buying more than they were selling.

During the recent surge of Bitcoin’s price over $100,000, a persistent outflow from exchanges suggests that investors are hesitant to sell their Bitcoins, even at such elevated costs.

If the current pattern persists, there’s a chance this upward momentum might extend further. Yet, it’s uncertain for how long those in control will maintain their silence.

Typically, as investors earn greater profits, it becomes increasingly probable that they’ll join a widespread sell-off. Given Bitcoin’s ongoing strong performance, a significant wave of selling might not be far off.

BTC Price

Bitcoin experienced a significant jump of over 7% within the past day, breaking free from its recent period of stability. In this upward trend, the value momentarily exceeded $104,000, but it has since slightly retreated to around $103,500.

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2024-12-06 14:10