fxstreet.com 01 Feb, 2021 08:00 am

Here is how stablecoins on-chain activity can help time Bitcoin price action

Here is how stablecoins on-chain activity can help time Bitcoin price action
Bitcoin price action has been ambiguous for a long time. However, with the introduction of multiple on-chain metrics, traders and investors can now un

The exchange inflow metric highlights the amount of USDT entering known exchange wallets daily.The increase in Tether’s exchange inflow is beneficial when predicting a rebound or buying the dip as Bitcoin price drops.The chart below shows USDT exchange inflow plotted together with Bitcoin price.From the chart, we can tell that the surge in Tether’s exchange inflow marked the beginning of Bitcoin’s recovery.

USDT exchange inflow plotted against Bitcoin price (green) For instance, all the three times Bitcoin tested sub $30,000 in January, Tether’s known exchange inflow shot up and followed by a rise in Bitcoin price.A vivid increase in the Tether exchange inflow gave way to the majestic spike in Bitcoin price above $38,000 toward the end of the week.

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