After a terrible 2018 crypto future, the year 2022 marks the beginning of a new bear trend distinguished by the failure of prominent crypto businesses across the board. This is also accompanied by a drop in the value of cryptocurrencies and the larger global market. This has now led to the dilemma of the direction of the crypto market for the coming year 2023.
Crypto To Face Another Crash?
After doing extensive research into crypto exchange netflow and historical indicators, some important hypotheses have been established by leading crypto analysts in the industry.
According to data, the netflow will eventually become positive as it approaches zero. This results in a lower number of buyers and more sellers. It is likely that at the same time it becomes positive, a local peak will be observed, followed by an increase in the amount of selling pressure in the future market. This could lead to a continuation of the downtrend and a loss of current support.
“Exchange netflow” is an indicator that measures the total net flow cryptocurrency that moves into or out of the wallet altogether centralized exchange. This metric can be positive or negative and its value is determined by subtracting the total amount of funds brought to the exchange from the total amount taken.
Read more: MicroStrategy Sold 704 Bitcoins (BTC) For The First Time For This Reason
Has Bitcoin Price Bottomed?
As reported earlier by CoinGape, the price of Bitcoin (BTC) the possibility to drop more because the top cryptocurrency has not been undervalued or has reached the bottom.
Furthermore, the level of volatility seen in stablecoin inflows traded on spot exchanges has reached an all-time high. This suggests that Bitcoin may start a bull run or fall to new lows in the near future.
As it stands, Bitcoin price is currently trading at $16,532. This represents a drop of 0.61% on the day, with a drop of more than 1.85% for the week according to the crypto market tracker. CoinMarketCap.
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Pratik has been a crypto evangelist since 2016 & has experienced almost everything crypto has to offer. So the ICO boom, the bear market of 2018, the Bitcoin halving so far – they’ve seen it all.
The content provided may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. Neither the author nor the publication is responsible for your personal financial loss.
