Bitcoin Coinbase Flow Pulse Signals Positive Trend 📈
Recently, CryptoQuant author Axel Adler Jr shared insights on X, highlighting the resumption of Bitcoin inflows from other exchanges to Coinbase. The focus was on the “Coinbase Flow Pulse,” an essential metric tracking the net Bitcoin flow between Coinbase and other crypto exchanges.
- The chart provided by the analyst illustrates the 7-day moving average (MA) trend of this indicator over recent years.
Notably, the Bitcoin Coinbase Flow Pulse has been positive since mid-2023, indicating net inflows to Coinbase from centralized exchanges. The analyst also emphasized the significance of the indicator’s 90-day MA trend, as depicted in the same graph. By comparing the 7-day MA to the long-term MA, two distinct zones for BTC were identified:
- When the 7-day MA crosses under the 90-day MA, bearish action is likely, marking a “Bear Market or Correction” phase (highlighted in red).
- In contrast, a signal above this line signifies a “Bull Market” trend (green).
Observing the graph, the 7-day MA of the Coinbase Flow Pulse previously dipped below the 90-day MA; however, the recent crossover suggests renewed demand for transferring coins to Coinbase. This pattern last emerged before the surge to a new all-time high (ATH), signaling potential bullish momentum for the asset this time.
- Coinbase’s role as a prominent destination for American institutional entities could explain its relevance in driving demand from US-based whales.
Contrasting Metrics: Coinbase Flow vs. Apparent Demand
While the Coinbase Flow Pulse portends a positive market outlook, another metric from CryptoQuant paints a less optimistic picture. Head of Research Julio Moreno highlighted the subdued Bitcoin demand measured by the “Apparent Demand” metric, estimating overall market demand beyond the scope of the Coinbase Flow Pulse.
- The graph depicts a decline in Bitcoin demand levels, especially following an extended consolidation phase, with current Apparent Demand hovering around neutral values.
Current BTC Price Movement
As of the latest update, Bitcoin is priced at approximately $61,000, reflecting a more than 5% increase over the past week.
Hot Take: Revisiting Bitcoin Flow to Coinbase 🌟
On-chain data reveals a recent uptick in Bitcoin inflows from exchanges to Coinbase, potentially signaling positive price movements ahead for the cryptocurrency.
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