Bitcoin’s capital flow indicates a distribution phase, shedding light on investor behavior, according to Joao Wedson, CEO of Alphractal, in a recent X formerly Twitter) Post.
Onchain Cap Flow Sentiment Index
After a dynamic Q4 that catapulted Bitcoin’s value by over 40% to $107,000, there are emerging signs of investors cashing in profits.
An analysis of the Onchain Cap Flow Sentiment Index shows Bitcoin is currently at a pivotal price zone, facing either a significant drop or a further surge.
Data from SOSOValue reveal that Bitcoin ETFs experienced net outflows of $242.3 million on January 2, suggesting that a minor Bitcoin distribution phase may be taking shape.
Bitcoin On-Chain CapFlow Sentiment Index – Alphractal
Sharp Decline in BTC/USDT Trading Volume on Major CEXs
Recently, there has been a decrease in the trading volume of the BTC/USDT pair on both spot and futures markets of major CEXs, as reported by CryptoQuant.
This reduction in trading volume on centralized exchanges leaves Bitcoin less equipped to offset any selling pressure.
BTC/USDT Trading Share among CEXs – CryptoQuant
Bitcoin Price Analysis
The Bitcoin daily price chart has shown that the crypto market leader has seen some price pullback from its Dec 18 high of $108,000.
BTC chart by TradingView
While It has remained above its key support of $90,900, a right-angled ascending broadening wedge is forming on the 4hr-TF. This technical alignment might indicate a buying level around the $91,000 level. If this level is broken, the $67,000 support level might be the next stop.
BTC chart by TradingView
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