As Bitcoin extended its losses from the previous week, its inflows to cryptocurrency exchanges surged to the highest levels seen in a year — perhaps a telling sign that institutional and retail investors are liquidating their positions en-masse.
With a relative strength index (RSI) of 24.03, Bitcoin was being oversold at rates not seen before in the current cycle.
Despite Elon Musk’s attempts for damage-control, Bitcoin has continued to slide — breaking its key support levels and spiraling below $40,000. What’s interesting, however, is that net inflow volume reversed to negative on Tuesday.
Upon a closer look, outflow volumes remained steady across the two days, dropping from 74,502 to 64,623 BTC. Inflow volumes, on the other hand, dropped by approximately 50% — from 106,326 to 51,917 BTC.