Bitcoin (BTC) is up 5.44% over the past thirty days, but the upward momentum stalled last week. Recently, the price remained between $69 thousand and $71 thousand. There were signs of BTC accumulation, but there were also metrics that supported the view that investors were selling into short-term strength.
In the short term, weakening spot ETF flows likely reflected the weak bullish sentiment behind BTC. Data from Farside Investors revealed an outflow of $305.7 million from March 18-20.
AMBCrypto reported ETF outflows and observed that this could trigger a pullback in Bitcoin. $65 thousand support. So far this has not happened, but it is a possibility that swing traders should be prepared for.
Despite ETF capital outflows, there was an accumulation signal. In particular, a CryptoQuant analyst I observed this Bitcoin Netflow from Binance (30-day Moving Average) falls below zero.
Negative net flows indicated accumulation and as a result, Bitcoin rose from $65,000 to $74,000. While the stock market reported losses, foreign exchange outflows kept prices around 70 thousand dollars, reflecting demand.
Examining the potential for a ‘close flush’
another one crypto analyst wrote that the binary CDD is:deadliest data point“The metric measures whether long-term holders’ coin movements are above or below average.
Readings clustered around 1 indicate that the owners getting ready to sell. Using the 7SMA to correct the metric, the analyst observed that the 0 reading appeared for the third time in four months.
This could create the conditions for a violent price fluctuation. A reading of zero indicated that senior owners were not selling; This could lead to an illiquid environment and pave the way for price correction.
AMBCrypto examined the accumulation propensity score measurement to understand whether larger institutions are hoarding BTC. At the time of this writing, the trend score was 0.094.
Values near zero indicate that larger organizations are distributing BTC. This meant it would be harder for the momentum to continue to rise in the coming weeks.
Overall, the measurements examined produced mixed signals. A sustainable rise is possible in the short term. At the same time, long-term investors should remember that the rally is not the result of aggressive spot demand and position themselves accordingly.
Final Summary
- Recent stock market outflows pointed to Bitcoin accumulation and helped explain the rise in March.
- Other metrics showed investors dispersed on short-term BTC strength, raising questions about how long the rally can be sustained.
