Bitcoin has been making higher highs and higher lows at least twice this month — a pattern that technical traders watch closely as a sign that selling pressure may be fading and a new direction could be forming.
Exchange Outflows Dominate MarchFor most of March, more Bitcoin has been leaving crypto exchanges than entering them. The exception was a brief spike in inflows just before Bitcoin touched a six-week high of $76,000 on March 17, according to data from CryptoQuant.
Since then, the outflow trend resumed. When coins are withdrawn from exchanges, it typically signals that holders are not planning to sell. Deposits, by contrast, suggest the opposite — investors moving assets onto platforms where they can quickly convert them to cash or stablecoins.
It has been one month that BTC outflows from exchanges have largely dominated flows.
While BTC continues its liquidation phase, Netflow has remained negative for almost an entire month.
He added that Bitcoin is still working through what he described as a liquidation phase, but the steady outflow has continued regardless.
Accumulation Without A Clear TrendThe buying is real, analysts say, but it has not been strong enough to push Bitcoin out of the tight range it has been trading in for months. Darkfost described the demand as an indication of ongoing accumulation rather than a signal that a major move is imminent.
The range-bound price action, he suggested, is partly a result of this dynamic — investors steadily absorbing supply without enough force to break the market in either direction.
Nick Ruck, director of LVRG Research, said the outflows point to long-term holders building positions rather than short-term traders chasing price. Removing Bitcoin from centralized platforms, he said, shows that holders are not interested in selling to protect against price swings.
That behavior, based on his read of the data, reflects growing confidence in Bitcoin’s underlying fundamentals despite uncertain market conditions.
Sentiment Still Fragile Despite Stabilization Signs Featured image from Pexels, chart from TradingView
