The IFP indicator shows an interesting situation in mid-2025. Despite Bitcoin's record high of $120,000, the Bitcoin Flow Pulse indicator shows a decline in Bitcoin flows to exchanges. This behavior suggests that investors, especially large ones, are not intending to sell at this stage.
This contrasts with the peaks of 2017 and 2021, which were accompanied by large Bitcoin flows, as indicated by the Bitcoin Flow Pulse indicator, followed by significant corrections.
The difference in 2025 is that the Bitcoin Flow Pulse indicator indicates a consolidating market. Despite the surge in early 2025, the market has managed to consolidate, suggesting that investors are holding onto the market and that flows to exchanges are limited. This situation reinforces the continuation of the uptrend, albeit with caution. This behavior indicates high confidence in the uptrend so far and partly explains why the price has continued to rise without any clear selling pressure. On the other hand, if the Bitcoin Inter-Exchange Flow Pulse indicator begins to rise, it indicates an intention to sell and an anticipated significant supply pressure. Therefore, a sudden rise in the indicator is a strong warning sign for speculators.
Written by Arab Chain
