Bitcoin’s $30k fortification developing cracks?

• Bitcoin recently saw a spike in its mean inflow as netflow turned positive.
• BTC price was on a consecutive decline, indicating possible price correction.

Bitcoin [BTC] has been basking in its upward journey, confidently surpassing the 30,000 price mark and rewarding its holders with profitable returns. Nonetheless, emerging insights from CryptoQuant’s latest data raise the possibility of an impending price correction, potentially pushing BTC toward the downside.

Read Bitcoin’s [BTC] Price Prediction 2023-24

Bitcoin hourly inflow spikes

Indications from CryptoQuant‘s data suggested that Bitcoin could be preparing itself for another round of price correction.

Furthermore, in a recent post, CryptoQuant highlighted a significant surge in Bitcoin’s Mean Inflow. The metric serves as a measure of the average amount of BTC per transaction flowing into exchanges. 

Source: CryptoQuant

The hourly inflow chart witnessed a notable spike, surpassing the thresholds of 15 and reaching 18. Such a surge in the mean inflow signifies a considerable influx of BTC into exchanges.

When multiple exchange inflows with a mean above 15 occur, it often signals a strong possibility of a correction in the coming hours. However, as of the time of writing, the inflow had declined.

Significant impact on Netflow?

A glance at the Netflow metric on CryptoQuant revealed a notable shift for Bitcoin, transitioning from a negative netflow to a positive one after several days.

As of this writing, the netflow stood at over 2,700 BTC, indicating an increased influx of the asset into exchanges. While the volume of inflows may not be substantial at this stage, the persistence of this trend could potentially indicate an upcoming correction.

Source: CryptoQuant

Bitcoin sees a decline in price

The current daily price trend of BTC suggested that a price correction may already be underway. Notably, BTC was experiencing a downward trajectory over the three days.

As of this writing, the king coin was trading at around $30,400. Although it remained within the $30,000 price range, it was trading at a slight loss, albeit less than 1%. 

Source: TradingView

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BTC was recently in the overbought zone of its Relative Strength Index (RSI). While it was still overbought, it gradually moved out and may drop below it if the price decline persists.

Nevertheless, both the Moving Average Convergence Divergence (MACD) and the RSI indicated that BTC was still following a bullish trend at press time.