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With blockchain data showing that bearish market sentiment is weakening, oversold bitcoin may succeed in establishing a base below $40,000.
- The seven-day average of net bitcoin inflows to exchanges turned negative for the first time since April 22, data provided by Glassnode show.
- That means coins are leaving exchanges after a gap of four weeks, a sign of investors are starting to take direct custody of their holdings, possibly anticipating a price increase.
- The fewer coins available for sale on exchanges, the better the chance of the market going up.
- Investors typically transfer coins to exchanges when they want to sell their holdings, so consistent net inflows represent a bearish mood, with outflows signalling bullish sentiment.
