Bitcoin has shown a pattern of higher highs and higher lows on at least two occasions this month, a trend closely monitored by technical traders as an indication that selling pressure may be diminishing, potentially signaling a new direction.
Exchange Outflows Lead in March
Throughout March, more Bitcoin has been leaving cryptocurrency exchanges than entering them. The only exception was a brief surge in inflows just before Bitcoin reached a six-week high of $76,000 on March 17, according to data from CryptoQuant.
Following that, the outflow trend resumed. When coins are withdrawn from exchanges, it typically indicates that holders are not looking to sell. On the other hand, deposits suggest the opposite – investors transferring assets to platforms for quick conversion to cash or stablecoins.
CryptoQuant analyst Darkfost highlighted that the data demonstrates a clear narrative. “This consistent outflow indicates genuine accumulation by investors, who are continuing to purchase and withdraw their BTC from exchange platforms,” he stated.
📊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.
—> This persistent outflow suggests genuine accumulation by investors, who continue to buy… pic.twitter.com/3ASkuVyBXV
— Darkfost (@Darkfost_Coc) March 24, 2026
He further mentioned that Bitcoin is still navigating a liquidation phase, but the consistent outflow has persisted despite this.
Accumulation Without Definite Trend
Analysts acknowledge that the buying activity is real but has not been forceful enough to break Bitcoin out of the narrow range it has been trading within for months. Darkfost described the demand as a sign of ongoing accumulation rather than a signal of an imminent major move.
He suggested that the price action being range-bound is partly due to this dynamic – investors absorbing supply steadily without sufficient momentum to shift the market significantly in either direction.
Nick Ruck, director of LVRG Research, noted that the outflows indicate long-term holders are building positions rather than short-term traders chasing prices. By moving Bitcoin off centralized platforms, he indicated that holders are not interested in selling to hedge against price fluctuations.
According to his interpretation of the data, this behavior reflects a growing confidence in Bitcoin’s underlying fundamentals despite uncertain market conditions.
Sentiment Remains Fragile Despite Signs of Stabilization
On-chain data company Glassnode observed in its weekly report that unrealized losses across the market have slightly diminished. While the firm described it as a modest improvement, it refrained from categorizing it as a recovery, cautioning that overall sentiment is still strained. According to its analysts, any stabilization is tentative at best.
At the time of writing, Bitcoin was priced around $71,215, showing an approximate 0.20% increase for the day.
Featured image from Pexels, chart from TradingView
Editorial Process for bitcoinist is focused on delivering extensively researched, precise, and impartial content. We maintain stringent sourcing standards, and each page undergoes thorough review by our team of leading technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content for our readers.
Be the first to comment