Bitcoin Market Indicator Signals Bear Phase Amid Major Exchange Outflows

The Bitcoin market cycle indicator has once again entered a bear phase, signaling caution for investors.

From a valuation standpoint, if Bitcoin’s price falls below $56,000, the risk of a larger correction could increase significantly.

#Bitcoin market cycle indicator is again in BEAR phase (light blue area).

From a valuation perspective, if the price pierces $56K to the downside, risks of a larger correction increase. pic.twitter.com/dsOS9ZSoHZ

— Julio Moreno (@jjcmoreno) August 30, 2024

However, some major players seem to be taking advantage of the recent dip. On-chain data from Santiment reveals a substantial 40,000 BTC drop in exchange supply over the past 48 hours, equivalent to about $2.40 billion.

This coincides with a notable surge in exchange outflows, suggesting strong buying pressure as investors move their Bitcoin off exchanges. The average Exchange Inflow/Outflow ratio indicates robust buying activity, marking the sixth such occurrence in the past decade.

Seems like some major players bought the #Bitcoin dip! On-chain data from @santimentfeed reveals a 40,000 $BTC drop in exchange supply over the past 48 hours, equivalent to about $2.40 billion. This aligns with a notable surge in exchange outflows! pic.twitter.com/9ZS8yrwFrI

— Ali (@ali_charts) August 30, 2024

Despite this buying pressure, retail investors have yet to react. Historically, retail investors tend to enter the market only when prices soar above $70,000, missing the lower entry points that institutional players capitalize on.

The average Exchange Inflow/Outflow ratio indicates strong buying pressure. This is the sixth time this has happened in the last ten years.

Retail investors, of course, won't react, they will enter when the price is above $70K. pic.twitter.com/WWzqKa776E

— Axel