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Bitcoin metric suggests where BTC price could trade next

  • Bitcoin flows from spot exchanges to derivative exchanges suggest a potential short term bullish flip for BTC price, 
  • However, BTC remains in bear market owing to flows to spot exchanges.
  • CryptoQuant Senior Analyst Julio Moreno shared the outlook on Thursday.

Bitcoin remains in a bear market as price struggles to sustain an upward move since the breakdown to June lows. However, according to one on-chain metric, the flagship cryptocurrency’s price outlook for the short term suggests a bullish flip.

Nonetheless, the prevailing market sentiment might see a period of further accumulation.

BTC price outlook

The bullish perspective, shared by CryptoQuant senior analyst Julio Moreno via Twitter, is based on the inter-exchange flows of BTC. 

The analyst says this metric has previously been a market cycle indicator, with prices going up when flows from Coinbase to derivative platforms increase and vice versa.

“Bitcoin flows from Coinbase to derivative exchanges are increasing again,” he tweeted on Thursday. “These kind of flows are associated with the market cycle – increasing flows from Coinbase to derivative exchanges, bull market [and] decreasing flows, bear markets.”

So while flows into spot exchanges remain high to suggest bears are still in charge, increasing transfers to derivatives means the chances of a bullish flip over the next few weeks are growing.

Bitcoin flows- what happens?

Bitcoin flows to derivative platforms jump in a bull run, helped by a risk-on sentiment that sees traders leverage their BTC on long positions. Investors also tap into the exuberance to bet on altcoins, using their Bitcoin sent to derivative exchanges as collateral. 

The opposite occurs during bear markets, with jitters in a risk-off environment seeing flows to spot exchanges amid selling pressure.

The post Bitcoin metric suggests where BTC price could trade next appeared first on CoinJournal.

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VGX Price Prediction as the Voyager Digital Token Flies

The VGX price surged to the highest point since July 18 as the bidding war for Voyager Digital continued. The token rose to a high of $0.6872, which was almost 400% above the lowest level this year. As a result, its total market cap surged to over $182 million.

Why is Voyager Digital token rising?

Voyager Digital was a leading Canadian cryptocurrency exchange that handled billions of dollars every week. The situation changed a few months ago following the crash of Terra’s ecosystem, Celsius, and Three Arrow Capital. 

Voyager Digital, facing a major cash squeeze, decided to file for voluntary bankruptcy in a bid to organize its resources. It also decided to stop deposits, withdrawals, and the creation of new accounts. The VGX token continued trading.

Behind the scenes, a bidding war by some of the biggest companies in the crypto industry like Coinbase, FTX, and Binance. In total, there were about 22 suitors for the company.

Now, the VGX token price rose after it emerged that FTX and Binance were the main contenders. According to Coindesk, Binance has moved aggressively to acquire those assets. FTX, which made an offer to buy the company last month, is still pursuing the company’s assets. 

Coinbase had partnered with Callaway Capital Management to launch a bid but then walked away. Besides, the company’s stock price has crashed hard this year. 

Therefore, the VGX price is rising as investors focus on the future of Voyager now that it seems like it will be saved by a bigger company. The rise is also part of a short squeeze that has been going on in the past few months.

VGX price prediction

The four-hour chart shows that the Voyager Digital price has been in a bearish trend in the past few weeks. In this period, the coin formed a falling wedge pattern, which is usually a bullish sign. This pattern also explains why the coin has gone parabolic in the past few days. 

Voyager moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the overbought level. Therefore, I suspect that the coin will now retreat as the enthusiasm about the company’s acquisition fades. If this happens, the next key support at $0.3800.

The post VGX Price Prediction as the Voyager Digital Token Flies appeared first on CoinJournal.