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Daily Bitcoin and Crypto Analysis

Daily BTC Analysis

November 10, 2020
It’s Tuesday and Bitcoin is trading sideways, which means it’s time to have a look at the on-chain data to assess the state of play.

We are still waiting for the day when exchange balances stop the decline that has now taken us to levels unseen during the last 2 years. Spot exchanges rely on Bitcoin balances, and without them, who is going to provide the Bitcoin for people to buy? Thankfully, there is still some 2.4M BTC held within exchanges, so we’re not quite at the point where we should panic.

Also, Bitcoin can always move back to exchanges quickly, so as the price moves up, we often see an influx of coins that halts the price appreciation. More sellers than buyers, which is the favourite response of traders everywhere to the question, “Why is the market going down?”

The chart above depicts the inflow of Bitcoin into Coinbase. The daily inflow of coins has spiked since the beginning of November. Does this mean they sold into the rally? …Or are they still lying in wait? 

Post the power shift from hydro to fossil in China, which essentially forced the difficulty adjustment to drop, the hash rate has recovered. 

The total number of active daily increases is back on the rise.

So taking the above into consideration, if those Bitcoin transferred to Coinbase were sold during the move up, then the on-chain data is happy to support the next leg up.

First, we must navigate the impact of the Covid-19 vaccine news; which will likely dominate the headlines for some time to come.

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