BCGAME - Free 5BTC Daily Bonus!The BTC funds flow index for all exchanges appears to be on a downward trend. Also, BTC transactions are on the rise.
The Bitcoin funds flow ratio is an indicator defined as the total amount of BTC entering or leaving exchanges divided by the total amount of BTC transferred across the network.
Basically, the indicator shows the percentage of BTC that is involved in FX related transactions, compared to the total transactions across the entire network.
With the help of the flow of funds index, it is possible to know what percentage of BTC transactions take place outside the exchanges. That is, through methods such as over-the-counter transactions (OTC) or P2P transfers.
The other relevant metric here is total tokens transferred. As the name suggests, this indicator shows the total number of BTC that have been transferred on the network in some way.
Now, here is a graph that shows the trend of both the BTC cash flow rate and the total transferred tokens:
As the graph shows, the BTC funds flow appears to be decreasing while the transferred tokens metric is increasing.
What this means is that while exchanges that get fewer trades generally signal low volatility, trading totals are also rising across the board. This suggests that OTC trades are skyrocketing (and therefore occupying a relatively larger percentage), rather than a drop in volatility itself.
Combining these indicators with this behavior is often a bullish signal. During the month of August last year, before the start of the bullfight, similar signs were present.
Bitcoin price
At the time this article was written, the BTC price was around $42,7, up 9,5% over the past 7 days. Last month, the crypto gained 23,5% in value.
Below is a graph showing the trend in encryption price over the last 3 months:
Bitcoin appears to have picked up a sharp uptrend as encryption approaches $43.000. It is unclear whether the BTC can continue to rally and go beyond this point, or whether it will break again like earlier in the month. If the indicators discussed above indicate anything, a bullish run seems more likely at the moment.
