To predict market sentiment by analyzing Bitcoin net inflows and outflows on exchanges, track the movement of BTC to and from exchange wallets. Net inflows—when more Bitcoin enters exchanges than leaves—often signal bearish sentiment, as investors may be preparing to sell. Conversely, net outflows—when more BTC is withdrawn—suggest bullish sentiment, indicating holders are opting for long-term storage over trading. Use on-chain data platforms like Glassnode or CryptoQuant to monitor these flows in real-time. Combine this with volume trends and price action for context: rising inflows with falling prices could confirm selling pressure, while outflows during price upticks may reflect accumulation. Sentiment shifts lag slightly behind these movements, so historical patterns and correlation analysis can refine predictions. This method offers a data-driven glimpse into market psychology.