Exchange Flows Neutral

Definition ∞ Exchange flows neutral describes a market condition where the net movement of digital assets onto and off of centralized exchanges is approximately balanced. This equilibrium suggests that neither significant selling pressure nor strong buying pressure is dominant. It indicates a period of market indecision or consolidation. Such flows often precede a breakout in either direction.
Context ∞ In the present market, neutral exchange flows suggest a temporary pause in aggressive buying or selling by participants. This situation often leads to tighter trading ranges and reduced price volatility, as market participants await clearer directional signals. Observing a sustained neutral flow can precede a substantial price movement.