- Bitcoin price rallied back into the $17,000 price zone after several failed attempts.
- On-chain metrics show a 44% increase in BTC deposits on all exchanges in November.
- A 20% decline has resulted from similar deposit influxes and would project Bitcoin to the $13,000 price zone.
Bitcoin price a countertrend move just before November's auction finalized. Still, on-chain metrics suggest the downtrend is not yet over.
Bitcoin price deposits rise 44% during November
Bitcoin price is undergoing a profit-taking consolidation after the bulls prompted a last-minute countertrend rally into the $17,000 price zone. After a weak bearish denial near the aforementioned price zone, the bullish gesture is certainly optimistic. Still, Bitcoin will need to display much more strength as the potential for another move south remains prevalent.
Bitcoin price currently auctions at $16,945. IntoTheBlock's on-chain metrics provide some cues as to what Bitcoin's long-term intentions may be. Specifically, the Inflow Volume Indicator, which accounts for all deposits made on exchanges, has increased by 44% on the month. On November 18, the indicator saw an influx of 165,290 Bitcoin delivered to exchanges. The last time the indicator had a similar influx was on September 14. Back then, 281,230 Bitcoin were deposited to active wallets and exchanges when BTC traded at $20,000.
In theory, the Inflow Volume indicator is meant to gauge market sentiment and justify liquidity upticks. There is a general bias amongst the crypto community, however, that more deposits of an asset onto exchanges eventually lead to a sell-off. In Bitcoin's case, the last two upticks did result in a 20% decline, although the move south took several weeks to play out.
Considering the on-chain metrics, history could repeat itself and a 20% decline would not be a far fetch scenario for the peer-to-peer digital currency. Such a move would land BTC price near the upper bounds of the $13,000 zone, a price level untraded since 2020.
As mentioned in the Bitcoin's macro thesis established earlier in the year, a breach of the $13,880 price level would invalidate Bitcoin's bull run potential.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.