Bitcoin [BTC] rose 5.44% over the past thirty days, but the bullish momentum has stalled over the past week. Recently, the price was stuck between the $69,000 and $71,000 levels. There were signs of BTC accumulation, but there were also statistics supporting the view that holders were selling in the short term.
In the short term, the weakened spot ETF flows likely reflected the weak bullish sentiment behind BTC. From March 18 to 20, Farside Investors data revealed outflows of $305.7 million.
AMBCrypto reported on the ETF outflows and noted that this could trigger a pullback to the $65k support. So far that hasn’t happened, but it was a possibility that swing traders should be prepared for.
Despite the outflow of ETF capital, there was accumulation. One in particular CryptoQuant Analyst noted that Bitcoin netflow (30-day moving average) was from Binance drop below zero.
The negative net flows indicated accumulation, and Bitcoin rose from $65,000 to $74,000 as a result. While the stock market posted losses, currency outflows reflected demand that kept prices around $70,000.
Investigating the possibility of an ‘impending flush’
Another one crypto analyst wrote that the binary CDD is the “deadliest data point“The metric measures whether long-term holders’ currency movements are higher or lower than average.
Measurements grouped around 1 show that holders are preparing to sell. Using the 7SMA to smooth the metric, the analyst noted that the value of 0 was observed for the third time in four months.
This could create the conditions for a violent price increase. The zero reading showed that experienced holders were not selling, which could give rise to an illiquid environment and pave the way for a price correction.
AMBCrypto examined the accumulation trend score to understand whether larger entities were hoarding or selling BTC. At the time of writing, the trend score was 0.094.
Values closer to zero indicate that larger entities distributed BTC. This meant it would be harder for momentum to remain bullish in the coming weeks.
Overall, the statistics examined have shown mixed signals. In the short term, a sustained increase was possible. At the same time, long-term investors should remember that the rally was not the result of aggressive demand in the spot market and position themselves accordingly.
Final summary
- Exchange rate outflows in recent days signaled Bitcoin’s accumulation and helped explain March’s rally.
- Other metrics showed holders split on BTC’s short-term strength, raising questions about how long the rally can be sustained.