- Crypto analyst Ali Martinez states that Bitcoin exchange inflow volume momentum has become an important indicator of when to enter the market.
- Inflow momentum in Bitcoin is falling, and buy signals are downtrending, which suggests that now is not a time for buying.
- Ali Martinez advised investors to be patient and assess whether Bitcoin confirms stronger movement or not before making any major moves.
In a recent X post, popular crypto analyst Ali Martinez drew the attention of traders and investors to one important indicator in the current Bitcoin market. Martinez pointed out that the momentum in the inflow volume on Bitcoin (BTC) exchanges is currently suggesting patience rather than immediate action.
This is a metric that is particularly useful for identifying key entry points, he said, and right now, it is no longer indicating that the time for a move is approaching.
Visual Indicators Support Wait-and-See Strategy
Glassnode, the well-known blockchain data analytics platform, revealed a lot with a chart that Martinez shared in his post. The chart tracks how much BTC is being deposited on exchanges over time. Large inflows to these exchanges indicate that investors are ready to sell, while relatively low inflows mean they are being more cautious and holding onto their assets.
Source: X @ali_charts
Two very important moving averages (200-day and 365-day Simple Moving Average), shown in red and blue lines, are also included in the chart. If inflow volumes remain mostly below or above these averages, then the market is showing a trend upward or downward, respectively.
At present, the inflow momentum is declining—a sign of cooling off after spikes in the past, said Martinez. He also suggests that traders should wait for stronger signals before reentering the market.
On the chart, we can find many upsides and downsides, which are marked with green and light red areas. According to Martinez, it is time for patience rather than immediate action.
Patience in the Uncertain Bitcoin Market
Ali Martinez believes timing is important when it comes to the BTC market, which he states is still full of opportunity. In uncertain times, he believes that the exchange inflow volume momentum could serve as a guide on when to make a buy move for BTC.
Although the excitement toward Bitcoin’s future is at an all-time high, he believes that seasoned investors will wait for the right time before making the next big move.