Recent analysis of the Bitcoin Coinbase Flow Pulse, an on-chain indicator tracking the net flow of BTC between Coinbase and other exchanges, suggests that the Bitcoin bull market is still intact despite the latest price volatility. The 30-day simple moving average (SMA) of the indicator has surged above the 90-day SMA and maintained a steep climb, historically signaling a shift towards a bull market phase.
The positive Coinbase Flow Pulse indicates a strong institutional interest in Bitcoin, as Coinbase is primarily used by US-based institutional entities. The absence of significant outflows typically seen in bear markets further supports the bullish sentiment. Additionally, the plunge in Bitcoin Exchange Reserves, measuring the total amount of BTC on centralized exchanges, reduces the risk of bearish pressure from self-custodial wallet inflows.
The confirmation of a continuing Bitcoin bull market by the Coinbase Flow Pulse is a positive sign for investors. As institutional interest remains strong and exchange reserves decrease, the potential for a supply shock-driven price rally increases. However, traders should remain cautious of short-term volatility, as demonstrated by Bitcoin’s recent pullback from $102,000 to around $96,700.
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Tags: Bitcoin, Bull Market, On-Chain Analysis, Coinbase Flow Pulse, Institutional Interest
Source: https://www.newsbtc.com/bitcoin-news/bitcoin-still-bull-market-on-chain-indicator/