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Bitcoin Exchange Netflow Plunges, Signaling Potential Bullish Trend

Recent on-chain data indicates a significant negative spike in Bitcoin exchange netflow, which could be a bullish sign for the cryptocurrency's price. The exchange netflow measures the net amount of Bitcoin entering or exiting centralized exchange wallets. A negative value suggests that outflows are outweighing inflows, potentially indicating accumulation by holders and a bullish trend. While these outflows alone may not be enough to turn the price around, they do suggest that some whales are buying at current prices, which could eventually help the price hit a bottom. The daily Relative Strength Index (RSI) of Bitcoin has also formed a possible bullish divergence, according to a CryptoQuant analyst. As of writing, Bitcoin is trading around $26,800, up 1% in the last week.

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