Is Bitcoin Bottom there? This string condition has not yet been met

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An on-chain Bitcoin metric still has not formed the same condition as in the previous bottom, suggesting that the current low may not yet have been reached.

Stablecoin Exchange Inflows (Top 10) Showed No Spikes Recently

As one analyst pointed out in a post on CryptoQuant, the top 10 stablecoin exchange flows saw an increase during the July 2021 low.

“Stablecoin exchange entries (top 10)” is an indicator that measures the sum of the ten largest stablecoin transactions that make their way to exchanges. The metric includes data from all types of stablecoins.

Since the top ten transfers usually come from the whales, this indicator can tell us whether the whales are active on the exchanges or not.

Usually, investors turn to stablecoins when they want to escape the volatility associated with most other cryptos. Once these holders feel that the prices are right to re-enter these markets, they buy more coins using their stablecoins, providing them with buying pressure.

When the value of the top 10 stablecoin exchange streams is high, it means that whales could send large amounts of stablecoins to exchanges to buy other coins. Such a trend could therefore be bullish for the prices of cryptos like Bitcoin.

Now, here is a chart that shows the trend of this on-chain indicator over the past few years:

Looks like the metric’s value has been muted for the past few days | Source: CryptoQuant

As you can see in the chart above, stablecoin inflows (top 10) to spot and derivatives exchanges have been displayed separately, since spot platforms are what investors use to convert their coins.

It appears that when the Bitcoin bottom formed in July 2021 during the mini-bear period at the time, the spot exchange version of the metric rose sharply.

This implies that whales participated in significant buying during this period with their stablecoin reserves, paving the way for a bullish reversal in BTC.

Over the past few weeks, the top 10 stablecoin inflows to spot exchanges have shown no significant movement, which means the whales are not yet exerting significant buying pressure.

Based on the past trend, this could indicate that Bitcoin’s current bottom has still not formed.

BTC price

As of this writing, the price of Bitcoin is hovering around $16.8,000, down 2% in the past week. Over the past month, the crypto has lost 18% in value.

The chart below shows the recent trend of BTC:

Crypto Value Seems To Have Decreased In Last Two Days | Source: BTCUSD on TradingView Featured image of Kanchanara on Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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