On-chain data shows Bitcoin has been moving to Coinbase from other exchanges. Here’s what this has historically meant for the asset.
Bitcoin Coinbase Flow Pulse Has Turned Back Green Recently
As explained by CryptoQuant writer Axel Adler Jr in a recent post on X, Coinbase has resumed inflows from other exchanges recently. The indicator of relevance here is the “Coinbase Flow Pulse,” which keeps track of the web amount of Bitcoin flowing between Coinbase and the opposite cryptocurrency exchanges.
Below is the chart shared by the analyst that shows the trend within the 7-day moving average (MA) of this indicator over the previous few years.
Looks just like the value of the metric has been heading up in recent days | Source: @AxelAdlerJr on X
As is visible within the graph, the Bitcoin Coinbase Flow Pulse has been positive since mid-2023, meaning that Coinbase has been receiving net inflows from the opposite centralized exchanges.
Nevertheless, the indicator’s trend about its 90-day MA is more relevant, nevertheless, shown in the identical chart. The analyst has defined two zones for BTC based on where the 7-day MA is in comparison with this long-term MA.
When the 7-day MA crosses under the 90-day MA, BTC will likely display bearish motion, so periods like this are categorized as “Bear Market or Correction” (highlighted in red). Similarly, the metric above this line implies “Bull Market” (green).
From the graph, it’s apparent that the 7-day MA of the Coinbase Flow Pulse had fallen under the 90-day MA just earlier, but now, the 2 have crossed back, implying that demand for shifting coins to Coinbase has picked back up.
The last time this pattern formed for the cryptocurrency was just before the rally towards the recent all-time high (ATH). Thus, this signal can also be bullish for the value this time.
As for why Coinbase could also be relevant in this fashion for the asset, the reply may lie within the proven fact that the platform is the known destination of American institutional entities. As such, a flow of coins from other exchanges into Coinbase could imply demand from these US-based whales.
While the market outlook appears positive from the angle of the Coinbase Flow Pulse, one other indicator from the on-chain analytics firm CryptoQuant might not be so vivid.
As CryptoQuant Head of Research Julio Moreno has explained in an X post, Bitcoin demand continues to be muted when considering the “Apparent Demand” metric, which strives to estimate the demand present in the complete market and never just a piece of it just like the Coinbase Flow Pulse.
The worth of the metric appears to have been neutral recently | Source: @jjcmoreno on X
Whereas the demand for Bitcoin was at significant levels earlier within the yr, it seems to have fallen off hard after the long consolidation streak, because the Apparent Demand is currently at roughly neutral values.
BTC Price
On the time of writing, Bitcoin is trading at around $61,000, up over 5% previously week.
The value of the coin appears to be slowly making its way up | Source: BTCUSD on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com