The crypto analytics firm Santiment says massive Bitcoin exchange-traded funds (ETFs) outflows are historically bullish for BTC.
In a new post on X, Santiment says that while the hundreds of millions of dollars that left Bitcoin ETFs on Monday look alarming, the data tells a story that runs directly counter to what most investors assume.
“Bitcoin ETFs combined for a total of -$297.3 million in outflows on Monday, a huge surge that indicated retail panic. Below on this Santiment chart, we’ve highlighted:
- Major BTC ETF inflow days, corresponding with times you can take profit successfully
- Major BTC ETF outflow days, corresponding with times you can buy the dip successfully.”
According to Santiment’s data, heavy Bitcoin ETF inflows typically signal a temporary top while major outflows tend to precede rallies.
“Contrary to popular belief, our findings suggest that heavy outflows actually suggest a buying opportunity, while heavy inflows are warning signs of a price top. Those who have been savvy enough to use this counter signal have reaped the rewards.”
Bitcoin is currently trading at $73,716, up over 5% since Monday.
Turning to Ethereum, Santiment says weak hands are using the rally as an opportunity to dump their ETH holdings.
“Small retail traders are dumping their Ethereum aggressively, with wallets with 0.01 ETH or less dropping 1,791 ETH ($4.16M) in just the past two days. The crowd believes this +17% pump since March 29th is a bull trap, which strengthens the likelihood of this bullish momentum continuing.
Further profit taking and dumping should be taken as a bullish signal.”
Ethereum is currently trading at $2,315.
Photo by Jonathan Borba on Unsplash
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