Bitcoin Liquidity Trends Signal Bullish Setup as Sell Pressure Drops

• Stablecoin inflows rising as Bitcoin inflows decline mark bullish rotation.
• Exchange Flow Multiple drop indicates exhaustion of short-term sellers.

Bitcoin may be entering a bullish phase, as multiple on-chain indicators align with patterns seen before previous rallies. Crypto analyst Axel Adler Jr.’s latest data from CryptoQuant shows that Bitcoin’s “Difference Liquidity” metric has turned negative on its 30-day moving average. 

This metric compares Bitcoin inflows to stablecoin inflows. A negative reading indicates more stablecoins entering the market relative to Bitcoin, a zone identified as “Demand Generation.”

Analysts note that similar patterns followed major market bottoms, specifically after the Terra/LUNA collapse in May 2022 and the FTX implosion in November 2022. 

In those cases, fear drove stablecoin holders to rotate into Bitcoin, which marked the start of recovery phases. The current setup resembles those scenarios, with stablecoin inflows once again surging.

If this stablecoin activity continues, it may confirm a renewed investor appetite for Bitcoin. Historically, this behavior has signaled an early stage of a bull run.

Selling Pressure Drops as Exchange Flows Decline

Another bullish indicator comes from Bitcoin’s Exchange Flow Multiple, which has sharply declined over the last 15 days. CryptoQuant reports that the metric dropped from nearly 1.0× to around 0.6×. This compares the 30-day average of Bitcoin inflows to exchanges with the 365-day average.

The current reading shows that Bitcoin inflows are 40% below the annual average, indicating lower sell-side activity. A similar dip in April 2023 preceded a major price rally. This suggests that short-term sellers may be exhausted, reducing pressure on the market.

When fewer coins move to exchanges, the available selling supply drops. This often creates conditions for upward price movement, mainly if demand stays constant or grows. Market analysts see this as a strong signal of potential bullish continuation.

Cycle Top Still Distant, Says Analyst

Crypto analyst Mikybull shared a long-term logarithmic chart of Bitcoin’s price action from 2012 to 2025. According to the chart, Bitcoin has yet to reach the current cycle’s peak. Each previous bull market top aligned closely with a red macro trend resistance curve.

At present, Bitcoin trades at $108,975.72, down 0.63% daily. Despite the minor pullback, it remains well below the resistance curve. Mikybull estimates the cycle top could reach a minimum of $144,000.

If historical patterns persist, Bitcoin still has upward room to move. This aligns with ongoing liquidity shifts and reduced selling pressure, reinforcing the broader bullish outlook.