While Bitcoin has seen less upward momentum in recent days, the asset still manages to maintain stabilization above the $84,000 ever since its reclaimed it earlier this week. So far, BTC’s uptick in the past week has reduced to a mere 0.2% as it price currently trades at $84,263 down by 3.2% in the past day.
As the market assesses Bitcoin’s next potential move, exchange flow data has become a key area of focus for a particular CryptoQuant analyst. Notably, insights shared by CryptoQuant contributor Ibrahimcosar shed light on evolving investor behavior.
Exchange Flow Patterns May Signal Bullish Undercurrent
In a post titled “Bitcoin Flow Across All Exchanges: Is a Strong Rally Ahead,” Ibrahimcosar examined the broader implications of current Bitcoin movement trends across centralized exchanges.
The core of the analysis lies in interpreting Bitcoin’s netflow across all exchanges. When more Bitcoin is deposited into exchanges than withdrawn, the netflow is considered positive—a condition that typically reflects growing selling pressure.
Conversely, when outflows exceed inflows, netflow turns negative, suggesting investors are withdrawing their assets for long-term holding, a behavior commonly viewed as bullish.
According to Ibrahim, recent data shows that since February 6, 2025, Bitcoin has experienced sustained outflows across multiple exchanges. This pattern indicates that holders may be moving their assets into cold wallets with the intention of long-term storage.
Historically, such activity has been associated with increased market confidence and, in many instances, preceded upward price movement.
Ibrahim further explains that while exchange inflows are usually a sign of short-term bearish sentiment due to anticipated selling activity, heavy withdrawals often also signal accumulation behavior.
When investors are willing to pay transaction fees to remove BTC from exchanges, it implies expectations of future price appreciation. Net outflows, especially when accompanied by low volatility, may hint at preparation for a more aggressive price rally.
Volatility Ahead For Bitcoin?
Although Bitcoin’s recent price action may appear muted, the flow-based indicators suggest underlying market strength. Ibrahim emphasized that strong outflows without corresponding spikes in inflows are worth monitoring, as they reduce liquid supply and may lead to increased price sensitivity during periods of renewed demand.
The broader implication is that while day-to-day volatility continues, BTC’s long-term trajectory could remain upward if these withdrawal trends persist. Such patterns have historically preceded key rallies and align with broader on-chain metrics pointing to growing accumulation among larger investors.
However, there has also been signals that bearish moves still lingers especially as the derivative market sees less BTC flowing indicating “reduced risk appetite.”
Whales are levering down.
Less BTC flowing to derivatives = reduced risk appetite.
Historically, this trend leans bearish. pic.twitter.com/j5k22mO5r9
— CryptoQuant.com (@cryptoquant_com) March 27, 2025
Featured image created with DALL-E, Chart from TradingView
Disclaimer: For information purposes only. Past performance is not indicative of future results.
