Bitcoin has hit highs and lows at least twice this month. This is a pattern that technical traders watch closely as a sign that selling pressure is waning and a new direction may be forming.
Foreign exchange outflows dominate in March
For most of March, there was more Bitcoin leaving cryptocurrency exchanges than coming into it. The exception was a brief spike in inflows just before Bitcoin reached a six-week high of $76,000 on March 17, according to data from CryptoQuant.
Afterwards, the outflow trend resumed. When coins are withdrawn from an exchange, it is usually a sign that the holder has no plans to sell. Deposits, by contrast, suggest the opposite. This means investors move their assets to a platform that can quickly convert them into cash or stablecoins.
CryptoQuant analyst Darkfost said the data tells a clear story. “This continued outflow represents a veritable build-up of investors continuing to buy and withdraw BTC from exchange platforms,” he wrote.
📊It’s been a month since BTC outflows largely dominated flows on exchanges.
Netflow has remained negative for nearly a month while BTC continues its liquidation phase.
—> These continued outflows suggest a real build-up of investors continuing to buy… pic.twitter.com/3ASkuVyBXV
— Dark Post (@Darkfost_Coc) March 24, 2026
He added that Bitcoin continues to go through what he described as a liquidation phase, but steady outflows are nonetheless continuing.
Accumulation without a clear trend
Analysts say the buying is real, but not strong enough to push Bitcoin out of the narrow range it has been trading in for months. Darkfost described the demand as a sign of continued buildup rather than a sign of an imminent major move.
He suggested that range-bound price action is partly a result of these dynamics. Investors are steadily absorbing supply without enough force to break the market in either direction.
Nick Ruck, director at LVRG Research, said the outflows point to long-term holders building positions rather than price-seeking short-term traders. He said removing Bitcoin from centralized platforms shows holders are not interested in selling to protect against price fluctuations.
This action, based on data he has read, reflects growing confidence in Bitcoin’s underlying fundamentals despite uncertain market conditions.
Sentiment still weak despite signs of stabilization
On-chain data company Glassnode noted in its weekly summary that unrealized losses across the market have eased slightly. The company called this a modest improvement but stopped short of declaring a recovery and warned that overall sentiment remained uneasy. Analysts said stabilization was tentative at best.
Bitcoin was trading at around $71,215 at the time of the announcement, up about 0.20% on the day.
Featured image from Pexels, chart from TradingView
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