DanBTC916
Mean Exchange Inflow Flashes Another Near Term Sell Signal - Caution Heading Into New Week of ETF Trading
In my previous post, I shared a simple analysis by looking at the hourly Mean Exchange Inflow. My analysis has found that a Mean Exchange Inflow reading above 7 is a warning of incoming sell pressure, possibly within a few hours to a few days. I backtested this going back a few years and its quite accurate. This metric recently flashed another sell signal, as we head into market open, suggesting selling pressure could be coming this week. As shown in the chart below, this metric flashed a sell signal on the day of the Spot ETF approval, and we saw sell pressure the next day as trading of the ETFs began. Regarding GBTC sell pressure, I think it could take another week of trading for the market to absorb the GBTC holders looking to sell at NAV in addition to Grayscale's higher fees. Bitcoin had a large run up into the Spot BTC ETF approval, so I think its time for a bull market correction.