Bitcoin market signals suggest the recent price recovery may face headwinds as a key exchange flow metric enters historically bearish territory. The Inter-Exchange Flow Pulse indicator has dropped below its 90-day moving average and sits in the red zone, pointing to weakening structural momentum despite prices holding near $90,000.
What Happened: Exchange Flow Metric
Bitcoin has rebounded from $80,000 to as high as $94,000 over the past three weeks following a 36.5% correction from its all-time high at $126,000.
However, analytics page Arab Chain reports the Inter-Exchange Flow Pulse has broken below its 90-day moving average while trending into the red zone, a combination that historically precedes correction periods or weak structural momentum.
The IFP measures net Bitcoin movement between exchanges over a given period.
The indicator's current position suggests reduced exchange flows that have supported price rallies in previous market cycles, according to Arab Chain.
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Why It Matters: Structural Weakness
Arab Chain analysts note that prices remain elevated compared to historical levels when similar IFP conditions existed, indicating price and inflows are temporarily disconnected.
Historical patterns show such detachments typically lead to prolonged consolidation or extended sideways movement until exchange flows reestablish market dominance.
The metric doesn't signal a collapse into bearish territory, but suggests sustained upward movement may not materialize in the near term due to structural slowdown in exchange flows.
Bitcoin traded at $90,033 at press time, down 2% over 24 hours, while daily trading volume increased 35% to $82.68 billion.
A sustained recovery requires the IFP to reclaim its 90-day moving average, which would signal increased bullish exchange flows, Arab Chain said.
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