Bitcoin Still In Bull Market, On-Chain Indicator Confirms

Keshav Verma

5 months ago

2 mins read

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The trend in an on-chain indicator could suggest that the Bitcoin bull market is still on even after the latest volatile action in the asset’s price.

Bitcoin Coinbase Flow Pulse Is Still Signaling A Bull Market

In a new post on X, CryptoQuant author Axel Adler Jr has talked about the latest trend in the Coinbase Flow Pulse for Bitcoin. The “Coinbase Flow Pulse” here refers to an on-chain indicator that keeps track of the net amount of BTC that’s moving between Coinbase and other exchanges.

When the value of this metric is positive, it means coins are flowing from wallets associated with other exchanges to those connected to Coinbase. On the other hand, the indicator being under zero implies Coinbase is going through outflows.

Now, here is the chart for the Bitcoin Coinbase Flow Pulse shared by the analyst that shows the trend in its 30-day and 90-day simple moving averages (SMAs) over the last few years:

As displayed in the above graph, the 30-day SMA of the Bitcoin Coinbase Flow Pulse surged above the 90-day a few months back and has since maintained its steep climb, creating distance between the two lines.

Historically, this type of crossover has signaled a shift toward a bull market phase for Bitcoin. Clearly, BTC hasn’t seen the reverse type of crossover yet, so this signal could still be considered active.

The 30-day MA crossing above the 90-day MA implies that inflows into Coinbase are gaining momentum. The reason this acts as a bullish signal for BTC is that the platform is primarily used by institutional entities based in the US.

Whenever coins are flowing into Coinbase, it’s a sign that these American traders are interested in the cryptocurrency. As the analyst explains,

Currently, a bullish phase prevails, driven by strong institutional interest. The absence of significant red zones indicates no large-scale outflows typically seen in a bear market when capital shifts from the spot market to futures.

While a transfer of wealth from other exchanges to Coinbase is a positive sign for Bitcoin, exchange inflows that occur from self-custodial wallets can be a bearish sign instead. Fortunately, BTC doesn’t have to worry about this for now as the BTC Exchange Reserve, a metric that measures the total amount of the asset sitting on centralized exchanges, has plunged.

Here is a chart shared by an analyst in a CryptoQuant Quicktake post that shows the latest trend in the indicator:

Bitcoin Exchange Reserve — Looks like the value of the metric has been sharply moving down in recent weeks | Source: CryptoQuant

BTC Price

Bitcoin had kicked the week off with some recovery to the $102,000 level, but the asset has since erased most of its gains as it’s now trading around $96,700.

Bitcoin Price Chart — The price of the coin seems to have been moving sideways over the last few days | Source: BTCUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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