Bitcoin price had a countertrend move right before the November auction ended. Still, on-chain measures indicate that the slump is not yet ended. Bitcoin price deposits increased by 44% in November.
Bitcoin price is consolidating after the bulls triggered a last-minute countertrend surge into the $17,000 price zone. The bullish gesture is hopeful after a weak bearish denial around the aforementioned price zone. Still, Bitcoin will need to show much more resilience since the possibility of another downward move looms.
The current Bitcoin auction price is $16,945. The on-chain measurements provided by IntoTheBlock hint at Bitcoin’s long-term objectives. The Inflow Volume Indicator counts for all exchange deposits and has climbed by 44% month on month.
On November 18, the indicator recorded delivery of 165,290 Bitcoin to exchanges. The last time the indicator had a comparable surge was on September 14. When BTC was trading at $20,000, 281,230 Bitcoin were put into active wallets and exchanges.
The Inflow Volume indicator evaluates market sentiment and justifies liquidity increases. However, there is a common consensus in the crypto world that greater deposits of an asset into exchanges ultimately lead to a sell-off. In the case of Bitcoin, the past two upticks resulted in a 20% collapse.
Given the on-chain measurements, history may repeat itself, and a 20% drop is not a far-fetched prospect for the p2p digital currency. A rise of this magnitude would place BTC towards the top borders of the $13,000 zone, a price level not seen since 2020.
A break of the $13,880 price threshold, as indicated in Bitcoin’s macro thesis outlined earlier this year, would undermine Bitcoin’s bull run potential.