Bitcoin’s Market Sentiment Shifts: A Bullish Signal or Temporary Pause?
Bitcoin Market Calm Before the Storm – Bitcoin is currently experiencing a “consolidation zone,” with new analysis indicating that exchange inflows have reached multi-year lows. According to Axel Adler Jr., a contributor to the on-chain analytics platform CryptoQuant, Bitcoin sellers have “dried up,” and market conditions are pointing toward a potential calm before a new price impulse.
Average Bitcoin Exchange Inflows Drop 64%
Data shows a significant reduction in Bitcoin sell-side pressure, particularly since Bitcoin broke above the $100,000 mark in late 2024. Adler noted that the average daily BTC inflows to major exchanges have dropped by 64% since November 2024, from 81,000 BTC to just 29,000 BTC per day. On March 23, the seven-day average inflows hit their lowest levels since May 2023, when Bitcoin was trading below $30,000. This sharp decline in selling pressure, combined with Bitcoin’s current price of around $84,206, which is almost three times higher than in May 2023, sets the stage for a potential market recovery.
Market Sentiment: Buyers Comfortable at Current Price Levels
The decline in selling pressure suggests that Bitcoin’s current price levels are comfortable for buyers, and this may indicate a shift toward a structural supply shortage. Adler believes that April and May could serve as a “calm before the next impulse,” as the market continues to digest the profit-taking waves that followed Bitcoin’s $100,000 breakout.
Binance’s Neutral Stance Signals Lower Selling Pressure
Additional analysis from CryptoQuant indicates that Binance inflows suggest a more neutral market stance. Joao Wedson, founder and CEO of Alphractal, pointed out that Short-Term Holders are sending significantly fewer BTC to Binance, with only 6,300 BTC being transferred to the exchange compared to an average of 24,700 BTC sent to other exchanges. This trend points toward lower selling pressure on Binance, indicating that traders may be adopting a more neutral outlook moving forward.
As Bitcoin continues to consolidate, all eyes are on potential future price movements as the market navigates through these periods of calm.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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