From the perspective of capital flow, the scale of capital outflow of BTC in the recent three trading days has been narrowing. The scale of capital outflow on August 21 was the lowest in the near future, at 175 million yuan, indicating a clear signal of change. Judging from the upward price trend, after the current BTC retracement below 12,000 US dollars, it has not been able to pull the market significantly. The narrowing of volatility means that there will be a trading signal for direction selection.
The flow of funds is upward. After the inflow of BTC funds of 1.98 billion yuan on August 17th, the following capital outflows on August 18, 19 and 20 will be 1.27 billion yuan, 1.12 billion yuan and 250 million yuan respectively. In other words, the scale of capital outflows has been significantly narrowed, which means that short-term long-term short-term strength is close to balance. Before further price trends come out, a clear direction selection signal must be necessary.
Data on the number of large transactions shows that in the short-term, the number of transactions involving large BTC transactions of more than 100 BTC continued to fall back to 676 on August 20, the lowest level since August 10. It shows that the signs of the main trader have fallen, which means that the opportunities for short-term price strength are decreasing.
At the same time, the number of BTC in the hot wallet of Binance Exchange dropped from 20,000 BTC to only 86,200 BTC. This shows that the number of BTC to be sold is not high, which means that the most intuitive selling pressure is not great. Nevertheless, the possibility that BTC will continue to test the key support level of $11,515 cannot be ignored. Judging from the fluctuation range, BTC has short-term conditions for continuing to withdraw.
In terms of popular currencies, more currencies will rise in the short term and show top signals, which is also in line with short-term adjustment expectations. For example, OMG's rise and fall, and QTUM's 60% increase after a sharp peak and fall are all in line with the expectations of partial adjustment.
On the whole, when ETH and LINK are both in an adjustment state, investors need to pay attention to the risk of chasing the rise during the period when the small-cap second-tier mainstream currency is rising. Local strength does not mean that the market can remain strong. As the adjustment deepens, more currencies will be synchronized with mainstream currencies. The systematic pull up waits for the BTC stabilization signal to appear.