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One of the primary factors elucidating the narrow fluctuations in Bitcoin’s price is its accumulation by investors, stated an analyst from the on-chain platform CryptoQuant, known by the pseudonym Darkfost.
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According to his data, the outflow of funds from cryptocurrency exchanges has remained consistent over the past month. The only exception was a brief influx just before Bitcoin reached a six-week high of $76,000 on March 17.
“This negative net inflow persists while Bitcoin continues its liquidation phase,” the analyst remarked.
He indicated that this trend reflects the actions of investors who are continuing to purchase Bitcoin and withdraw it from exchanges, thereby reducing the supply in the market.
An influx of funds into exchanges is typically viewed as a bearish signal, as it suggests investors are ready to sell the asset. Conversely, an outflow of funds indicates accumulation and may precede an increase in buying pressure.
The analyst emphasized that the current demand is insufficient to establish a sustainable upward trend. Nevertheless, the flow structure indicates a growing confidence among investors in Bitcoin’s fundamental attributes, even amid instability.
Previously, analysts from Wintermute stated that in the coming weeks, Bitcoin’s price could test the $74,000 level or drop below $65,000.
