Understanding Inflow Signals and Outflow Signals for Trading Bitcoin

evo

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Apr 2017
Using On-Chain Analysis to Understand Exchange Flow for Trading Bitcoin
For trading Bitcoin, using on-chain analysis on CryptoQuant is another signal that can be used to monitor Bitcoin Inflow and Outflow from exchanges. Below are the Inflow Signals and Outflow Signals that reflect buying and selling pressure on Bitcoin:

Inflow Signals​
(Caution with Long Postions)​
1250 or more​
Small sell pressure increasing...
3500 or moreModerate sell pressure increasing...
7000 or moreLarge sell pressure may occur in the immediate short term...


Outflow Signals​
(Caution with Short Postions)​
1250 or more​
Small buy pressure increasing...
3500 or moreModerate buy pressure increasing...
7000 or moreLarge buy pressure may occur in the immediate short term...

  • When you see both signals flashing back and forth, this is a fight between the bears and bulls. This is considered a danger zone, often referred to as chop trading.
  • Alerts are applicable to current market conditions and/or upcoming market conditions. Alerts are only conditions of market, and your own analysis should determine buy/sell.
 

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