I believe that all cryptocurrency investors are very concerned about why the price of BTC has risen? And why did it fall? How to predict in advance?

Today KingData teaches you to analyze the cause-and-effect relationship of price rise and fall by observing the exchange fund flow data.

We all know that price rise is the inevitable result of continuous inflow of funds, and price decline is the inevitable result of continuous outflow of funds. Therefore, by monitoring the inflow or outflow of exchange funds, there is an opportunity to find out whether the price is rising or falling in advance.

The picture below is the BTC flow monitoring data map of https://ikingdata.com exchange

In the figure, we screened out the BTC net inflow data of four well-known exchanges (Coinbase, Huobi, OKEx, and Binance). The phenomenon of inflow or outflow.

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Binance exchange BTC outflow data chart

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Coinbase exchange BTC outflow data chart

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Bitstamp exchange BTC outflow data chart

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Based on the analysis conclusions of the above three groups of charts

1) The large outflow of BTC from the exchange will not necessarily lead to a price drop, which is very obvious in the outflow data of Binance.

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Coinbase exchange BTC inflow data chart

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Binance exchange BTC inflow data chart

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Bitstamp exchange BTC inflow data chart

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Combining the above three groups of exchange inflow data chart analysis

1) Large inflows of BTC to exchanges will not necessarily boost the price of BTC.

2) Especially the BTC inflow data of Binance. Whenever there is a large outflow in a single day on Binance, the price of BTC will show a short-term decline.

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Write the conclusion of the analysis at the end

The large inflows and outflows of BTC on exchanges have different meanings from the inflows and outflows of funds in the stock market. There is no obvious positive or negative correlation between the flow of BTC funds on exchanges and the price of BTC. However, when the inflow and outflow of BTC on the exchange showed continuous signs of heavy volume, the price of BTC rose in stages, which may reflect the signs of market recovery in advance.

To look at exchange data, go to KingData.https://ikingdata.com