Bitcoin Liquidity Warning: Inter-Exchange Flows Turn Red
The post Bitcoin Liquidity Warning: Inter-Exchange Flows Turn Red appeared on BitcoinEthereumNews.com.
Bitcoin’s market structure showed mixed signals as inter exchange flows weakened while exchange reserves stayed historically low. As a result, traders faced a tighter liquidity setup even as price held near recent highs. Bitcoin Faces Liquidity Test as Inter Exchange Flows Turn Negative Bitcoin traded at a critical point as inter exchange liquidity signals weakened, according to data shared by analyst Kamran Asghar on X. The Inter exchange Flow Pulse, or IFP, slipped into the red zone, a level that has historically aligned with periods of consolidation or market corrections. While Bitcoin’s price remained relatively firm, the underlying flow data pointed to fading liquidity support across exchanges. Bitcoin Inter exchange Flow Pulse IFP Chart. Source: CryptoQuant via Kamran The IFP tracks how Bitcoin moves between trading venues, offering insight into whether capital flows support bullish continuation or signal stress. In the current setup, the indicator moved below its neutral range, suggesting that inter exchange demand is no longer expanding. Past cycles on the same chart show that similar red zone readings often preceded sideways trading or deeper pullbacks, even when spot prices initially held steady. At the same time, Bitcoin’s price line continued to hover near recent highs, creating a divergence between price action and liquidity flows. Analysts often view such gaps as warning signs, as prices can struggle to sustain momentum without strong inter exchange activity. According to the chart, previous periods where price remained elevated while IFP weakened eventually resolved through either prolonged consolidation or sharp corrections once selling pressure increased. The chart also shows that earlier bullish phases aligned closely with sustained green IFP zones, where inter exchange flows expanded alongside rising prices. In contrast, the current red reading indicates that liquidity conditions have shifted, even though broader market sentiment has not fully adjusted. As a result,…
