Chainalysis analyst explains on-chain data of exchanges, how has Bitcoin been in the past seven days?

Chainalysis, a blockchain data analysis company, analyst Philip Gradwell shared his observations on the flow of Bitcoin. The analyst presented three charts illustrating the Bitcoin dynamics on exchanges over the past seven days.

Recent Bitcoin Inflow Situation

Philip Gradwell stated that despite the rising price of Bitcoin, the average inflow to exchanges in the past seven days has not increased compared to the inflow over the long term of 30 days, 90 days, and 180 days.

In Chainalysis' explanation, they believe that the inflow of funds to exchanges represents an increase in selling pressure in the market. This means that more people are moving Bitcoin to exchanges with the purpose of converting it into other assets.

Recent Exchange Holdings of Bitcoin

Philip Gradwell also mentioned the situation of Bitcoin holdings on exchanges, which they track within a certain range. Within the past seven days, the lower limit of this range has increased by 11,900 Bitcoins. He believes that although this is a small amount, it could still affect the net inflow situation.

In Chainalysis' explanation, they believe that the increase in the total number of Bitcoins held on exchanges indicates that more market participants may want to sell or that those buying Bitcoin choose to store their coins on exchanges.

Bitcoin Trading Intensity

According to Chainalysis, trading intensity refers to the value of Bitcoin traded in the order book compared to the value of Bitcoin flowing into exchanges. A higher intensity indicates that more market participants are looking to buy rather than sell.

Philip Gradwell mentioned that in the past seven days, the intensity was significantly higher compared to the long-term average, indicating that demand exceeds supply.

In conclusion, this analyst's view is good news for readers who are bullish on Bitcoin. However, statistical interpretations are based on certain assumptions, and if these assumptions are flawed or invalid, it may lead to inaccurate predictions. It is important to remain cautious of investment risks.