Bitcoin Exchange Netflow Explained: Calculation, Signals and Trading Use Cases

Bitcoin Exchange Netflow measures the difference between BTC inflows and outflows on centralized exchanges and helps assess buy and sell pressure. This guide explains how the metric is calculated, how to read positive, negative and neutral values, and how to turn them into trading signals with concrete historical examples. It also shows how to combine Netflow with indicators like SOPR, funding rates and exchange reserves, while outlining key limitations and risks.