#CryptoIntegration Let me explain the meaning of flow in cryptocurrency investment:
🔄 Meaning of Flow
The word flow usually refers to:
Money Flow:
The movement of money entering the market (buying) and leaving the market (selling).
If the flow is net positive → it means investors are buying more (buying pressure).
If the flow is negative → it means people are selling more (selling pressure).
Token Flow:
The transfer of tokens from private wallets to exchanges or vice versa.
Example:
A lot of tokens entering exchanges → a likelihood of selling (downward pressure).
Tokens exiting exchanges to private wallets → an indication of holding intentions (positive).
📊 How is flow used in analysis?
Positive flow: may indicate that the market is in a state of optimism, prices might rise.
Negative flow: may indicate fear or profit-taking, and often prices drop.
📌 Practical Example
If we notice that Bitcoin flow to exchanges suddenly increased → there is a high probability that investors are preparing to sell = downward pressure.
If we see Bitcoin exiting exchanges to cold wallets in large amounts → investors intend to hold = upward pressure.
Would you like me to show you a simple indicator (Money Flow Index - MFI) that traders use to know the flow and buying/selling strength on the chart?