Bitcoin bull market strong as on-chain data shows demand
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Despite recent volatility, on-chain indicators suggest Bitcoin’s bullish trend remains strong. The coinbase flow pulse, a key metric tracking Bitcoin movements between coinbase and other exchanges, continues to signal institutional accumulation rather than distribution.
Institutional demand driving bullish momentum
Historically, a 30-day moving average (SMA) crossing above the 90-day SMA in coinbase flow pulse has indicated a shift into a bull market phase. This pattern emerged months ago and remains intact, suggesting that institutional entities are increasing their bitcoin holdings through coinbase, the leading exchange for U.S.-based institutional investors. Cryptoquant analyst Axel Adler Jr. highlights that there are no signs of large-scale outflows, which typically occur during bear markets when capital shifts from the spot market into derivatives.
Exchange reserves hit multi-year lows
Another bullish signal comes from Bitcoin’s exchange reserve, which measures the total btc held on centralized trading platforms. A declining reserve indicates that investors are moving coins off exchanges into cold storage, reducing the immediate selling pressure. The current decline in exchange reserves suggests a supply squeeze could be underway, reinforcing the broader bullish narrative.
Price action and market outlook
Bitcoin started the week recovering to $102,000, but selling pressure has since pulled it back toward $96,700. Despite this retracement, key on-chain indicators point to continued accumulation rather than distribution. With institutional demand rising and supply tightening, Bitcoin’s long-term bull cycle appears intact, with potential for further upside as market conditions evolve.
Institutional demand driving bullish momentum
Historically, a 30-day moving average (SMA) crossing above the 90-day SMA in coinbase flow pulse has indicated a shift into a bull market phase. This pattern emerged months ago and remains intact, suggesting that institutional entities are increasing their bitcoin holdings through coinbase, the leading exchange for U.S.-based institutional investors. Cryptoquant analyst Axel Adler Jr. highlights that there are no signs of large-scale outflows, which typically occur during bear markets when capital shifts from the spot market into derivatives.
Exchange reserves hit multi-year lows
Another bullish signal comes from Bitcoin’s exchange reserve, which measures the total btc held on centralized trading platforms. A declining reserve indicates that investors are moving coins off exchanges into cold storage, reducing the immediate selling pressure. The current decline in exchange reserves suggests a supply squeeze could be underway, reinforcing the broader bullish narrative.
Price action and market outlook
Bitcoin started the week recovering to $102,000, but selling pressure has since pulled it back toward $96,700. Despite this retracement, key on-chain indicators point to continued accumulation rather than distribution. With institutional demand rising and supply tightening, Bitcoin’s long-term bull cycle appears intact, with potential for further upside as market conditions evolve.