As of October 27 (UTC), Bitcoin’s exchange outflows suggest improving supply conditions, but the evidence still supports a neutral stance.

Exchanges shifted from 7,278 BTC in net inflows on October 26 to 12,702 BTC in net outflows on October 27. Seven- and 30-day net outflows totaled 4,633 and 4,048 BTC, although four of the past seven days recorded inflows.

Funding reached +0.00762%, above its seven-day average of +0.00637% and 30-day average of +0.00611%. This indicates a long bias, but does not establish overheating. :chatgpt-content-reference{index="0"}

Open interest stood at $25.67 billion, up 0.56% over seven days and 0.33% over 30 days. Without price data, this increase cannot be attributed entirely to additional leverage.

As a supplementary indicator, LTH-SOPR fell from 1.1657 to 1.0124, approaching breakeven for spent long-held coins. This does not establish a decline in selling volume. :chatgpt-content-reference{index="1"}

I remain neutral pending sustained outflows. Repeated outflows alongside stable funding and OI would strengthen the constructive case; renewed inflows accompanied by sharp increases in both would prompt a reassessment.

Recent net outflows were driven heavily by one day. Funding remains positive, while OI growth is modest. LTH-SOPR warrants monitoring near breakeven.

Tomorrow, I’ll review finalized October 28 UTC data for continued outflows and changes in funding and OI. I’ll also watch whether LTH-SOPR holds above 1 or repeatedly falls below it.

Written by CoinNiel