Bitcoin netflows on exchanges are still deeply negative, according to on-chain data, indicating that BTC is still bullish. Despite the drop to $44k.
According to a CryptoQuant post, the Bitcoin netflow indicator has been extremely negative recently, implying that the market is still bullish overall.
By subtracting the inflow from the outflow, the netflow is obtained. When this indicator has a negative value, it means that there are more outflows than inflows. A situation like this could indicate that the market is under buying pressure.
A positive value, on the other hand, occurs when inflows outnumber outflows. As a result, a positive value could indicate that the market is under selling pressure.
After smoothing out the curve with a 30-day moving average, here is how the chart for all exchanges BTC netflow looks:
According to the graphic, Bitcoin has begun to exhibit a negative netflow trend, with recent values becoming more pronounced.
In addition, the chart displays some intriguing relationships with the coin’s price over the past year. Netflows were extremely negative before the bull market began. When the crash occurred, the curve shifted to the positive side.
Given the aforementioned trends, reasonably negative numbers, such as those shown above, could be bullish for Bitcoin price action.