- Bitcoin’s difference in liquidity highlighted increased buying power in the market.
- Lowered BTC inflows to exchanges over the past month hinted that sellers were exhausted.
Bitcoin [BTC] witnessed subdued on-chain activity, though it faced increasing corporate demand. This created a striking divergence between the price action and network metrics.
Miner outflows were below average, which has historically signaled miners’ confidence in a price appreciation. The Coin Days Destroyed metric noted no panic amongst long-term holders, another sign of confidence amongst seasoned holders.
On the other hand, aggressive buying was cooling off, as the falling Taker Buy/Sell Ratio reflected.
The rising spot BTC ETF inflows, combined with the conviction highlighted earlier, might be enough to drive a sharp impulse move and a new all-time high for Bitcoin.
Other metrics supported the bullish argument for Bitcoin.
How Bitcoin’s different liquidity zones could spark the next price jump
Source: Adler Crypto Insights
An increase in market buying power, combined with signs of seller exhaustion, could be setting the stage for Bitcoin’s next rally.
According to crypto analyst Axel Adler Jr., the Difference Liquidity metric, which tracks changes in available buying power based on Bitcoin and stablecoin inflows to exchanges, has turned negative on its 30-day Moving Average.
This places it in the chart’s “demand generation” zone, highlighted in blue, which historically signals strong and sustained Bitcoin accumulation.
The last time this level of demand shift occurred was during the market recovery following the Terra/LUNA collapse in May 2022.
If stablecoin inflows to exchanges now match or exceed those seen after the LUNA crash or the FTX implosion in November 2022, Bitcoin could be poised for a sharp upward move.
Source: Adler Crypto Insights
The Bitcoin Exchange Flow Multiple compares the past 30 days of BTC inflows to their 365-day moving average.
Over the last two weeks, this metric has dropped from 1.0x to 0.6x—a 40% decline, indicating a significant reduction in the number of coins being sent to exchanges.
The last time such a sustained drop occurred was in April 2023.
Historically, low exchange flow multiples like this have often preceded strong price rallies, suggesting a potentially bullish outlook for Bitcoin.
Source: https://ambcrypto.com/a-bitcoin-ath-in-the-making-heres-why-key-data-suggests/