High Demand Signals Bullish Trend for Bitcoin Despite Price Fluctuations

Recent analysis from CryptoQuant analyst Darkfost highlights a persistent high demand for Bitcoin, despite its current trading range between $90,000 and $105,000. The 30-day moving average (30DMA) of the exchange inflow/outflow ratio has shown continual signs of accumulation, as outlined in the latest chart. A critical observation is that when this ratio falls below 1, it signifies that more assets are flowing out of exchanges than coming in, indicating that traders are increasingly holding onto their Bitcoin rather than selling. This behavior is often interpreted by professional investors as a bullish indicator. In essence, a declining ratio suggests a robust underlying demand. Historical data supports this observation, showing that when the 30DMA enters what is termed the ‘high-demand zone,’ it typically precedes a short-term uptrend in Bitcoin’s value.