Bitcoin’s recent price drop coincided with large inflows on the stock exchanges. However, this trend is starting to reverse.
At the time of writing, Exchange Netflow was back in negative territory, down to -303.67 BTC, while the seven-day cumulative figure stood at -1232 BTC. This reversal means that fewer people will immediately take their coins off the exchange to sell.
In addition, derivatives terms also improved as sellers sold less aggressively.
Funding rates fell dramatically from .003985 to .000337, indicating that many long positions have been unwound. In addition, Open interest (OI) increased only slightly to about $21.24 billion. This implies that little or no leverage is used.
However, the Stablecoin Supply Ratio was low at 10.46 and significantly lower than earlier points in the cycle. This combination is important because stablecoin liquidity remains available while selling pressure on the exchange decreases.
For now, Bitcoin appears to be moving from distribution to stabilization, although stronger demand is still needed to confirm a sustainable recovery.
IFP signals a potential market shift
A quiet outflow profile on the stock market and a cooling effect recently indicated that selling pressure was starting to wane. Against this background, the Inter-exchange Flow Pulse (IFP) currently indicates a positive market positioning.
The IFP fell below the 90-day average for most of 2025 and early 2026 due to continued weakness, while prices fell from just above $120,000 to $60,000.
So far, bearish signals have been dominant during this period. However, in recent weeks there has been a stabilization of the IFP indicator and it has started to move closer to long-term averages.
These developments are important because previous bullish crossovers tend to be associated with greater accumulation and better overall market conditions.
Previous green periods were also closely associated with larger price increases. While the trend appears positive at the moment, there is still more work to be done before a full bullish reversal can occur. Spot demand must be further strengthened.
Together, falling exchange rates, declining leverage and improving IFP positioning indicate that sell-side pressure is easing. However, a sustainable recovery will require stronger demand on the spot market.
Final summary
- Bitcoin [BTC] selling pressure continues to ease as currency outflows return and leverage is reset in derivatives markets.
- Bitcoin is showing early signs of accumulation, although stronger spot demand remains critical for trend confirmation.