The seemingly calm sideways market is actually a battlefield where major players and retail investors are engaged in fierce competition. Many people only focus on the candlestick charts, unaware that the true flow of funds is recorded on the blockchain data.

Why is this the case? Because blockchain is a transparent ledger, and every transaction and movement of funds is immutable. Major players can manipulate the market on the chart, but they cannot control the true records on the chain. This is why experienced traders trust on-chain indicators more than just looking at candlestick charts.

Let's first look at the most straightforward signal—the flow of funds on exchanges. When users transfer coins from their wallets to exchanges, it usually indicates an intention to sell; conversely, withdrawing coins from exchanges to cold wallets suggests holding and locking in position, implying confidence in the market’s future. Recent data from the past week is quite interesting: outflows from exchanges of mainstream coins exceeded inflows by 15,000 coins, indicating that large holders are gradually withdrawing and locking their assets, releasing a clear bullish signal. Meanwhile, retail investors' inflows to exchanges increased by 30%—many small investors are panicking and rushing to transfer coins to exchanges in preparation to sell.

This contrast clearly illustrates the situation. On one side, major players are strategically positioning; on the other, retail investors are cutting losses. On-chain data acts like a record of market participants' behavior. Learning to interpret this data allows you to see who is truly bullish and who is being driven by emotions.