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Liquidity between exchanges shows structural weakness as Bitcoin trades near $90,000
Source: Yellow Original Title: Liquidity between exchanges shows structural weakness as Bitcoin trades near $90,000
Original Link: Bitcoin shows signs that the recent price recovery could face obstacles, as a key flow metric between exchanges has entered a historically bearish territory. The Inter-Exchange Flow Pulse indicator has fallen below its 90-day moving average and is in the red zone, indicating a weakening of structural momentum despite prices staying near $90,000.
Flow metric between exchanges
Bitcoin has rebounded from $80,000 to a high of $94,000 in the last three weeks after a 36.5% correction from its all-time high of $126,000.
However, according to analytics reports, the Inter-Exchange Flow Pulse has fallen below its 90-day moving average while entering the red zone, a combination that historically precedes correction periods or a weak structural impulse.
The IFP measures the net movement of Bitcoin between exchanges during a specified period.
The current position of the indicator suggests a reduction in flows between exchanges that have supported previous price rebounds in past market cycles.
Structural weakness
Analysts note that prices remain elevated compared to historical levels where similar IFP conditions existed, indicating that prices and inflows are temporarily disconnected.
Historical patterns show that these disconnections often lead to prolonged consolidation or an extended sideways movement until the flows between exchanges restore their dominance in the market.
The metric does not indicate a collapse into a clearly bearish market, but suggests that a sustained bullish movement might not materialize in the short term due to the structural slowdown of flows between exchanges.
Bitcoin was trading at $90,033 at the close of this edition, a 2% decline over 24 hours, while the daily trading volume increased by 35% to $82.68 billion.
A sustained recovery requires the IFP to recover its 90-day moving average, which would signal increased bullish flows on exchanges.