Exchange Flow
What it shows
Exchange netflow shows the difference between coins flowing into exchanges and out of them, meaning the balance of supply and demand pressure.
How to read it
Read net flow as a balance of intent: a sustained outflow has historically accompanied accumulation, while large inflows preceded supply waves. Filter out single large transfers, as the persistent trend is what matters.
Parameters
- Net flow (in/out)
- Net outflow (negative) = accumulation; net inflow (positive) = potential selling pressure.
- Positive reading: A clear net outflow from exchanges: historically accumulation and limited sell-side supply.
- Negative reading: A large net inflow to exchanges: historically building selling pressure.
- Neutral reading: Flow near zero: a balance between inflow and outflow.
Example
Outflows from exchanges exceed inflows (negative netflow), meaning more coins leave exchanges than arrive, which was historically an accumulation zone with reduced sell pressure. Positive netflow (inflow dominance) historically foreshadowed selling pressure; near zero is balance.