On-chain data suggests that Bitcoin (BTC) is poised for a strong price rally. According to CryptoQuant analyst AxelAdlerJr, BTC exchange inflows have plummeted to around 30,000 daily, reaching their lowest levels since 2016. Historically, periods of low exchange inflows have preceded significant BTC rallies. Another bullish indicator is the netflow-to-reserve ratio, which has turned negative. This means that more BTC is leaving exchanges than entering them. Historically, periods of extremely negative netflow-to-reserve have marked local market bottoms. These on-chain metrics suggest that BTC is likely to see strong price action going forward. Investors should keep a close eye on the market as BTC prepares for a potential breakout.

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