Bitcoin (BTC) appears to be entering a new “consolidation zone” as exchange inflows reach their lowest levels in several years, according to recent analysis. In a post on X, an analyst indicated that the supply of Bitcoin available for sale has significantly diminished.
Since November, average exchange inflows have plummeted by 64%, and the pressure from sellers has notably eased since Bitcoin’s initial rise above $100,000 at the end of 2024. By examining Bitcoin inflows to major cryptocurrency exchanges, the analyst noted that the daily average of BTC being sold has sharply declined.
“Selling pressure on leading exchanges has fallen from 81K to 29K BTC every day,” the analyst explained, accompanied by a relevant chart. “We are entering a phase of asymmetric demand.”
The 7-day average inflows dipped to their lowest point since May 2023, at a time when BTC/USD was priced under $30,000. With current values nearly tripling that figure, there is optimism about a possible positive shift in the upcoming 2025 Bitcoin market cycle.
“The market has absorbed waves of profit-taking post the $100K breakthrough,” the analyst concluded. “With sellers less active and buyers appearing comfortable at these levels, we could see a structural supply shortage. The period of April to May might serve as a consolidation phase, a lull before the next surge.”
Moreover, there are subtle indications that market sentiment is becoming more in line with actual prices. The Coinbase Premium, a metric for gauging demand from US exchanges, has stabilized around neutral levels, recovering from previously negative indications even without a substantial price recovery.
However, short-term projections suggest a potential increase in inflows this week—especially from Binance, in contrast to Coinbase. “Short-Term Holders are transferring significantly less BTC to Binance—only 6,300 BTC, in comparison to an average of 24,700 BTC sent to other exchanges,” noted another analyst. “This implies that selling pressure on Binance is lower, indicating that many traders may be adopting a more neutral approach.”
This information is not financial advice. Every investment and trading decision carries risk, and individuals should perform their due diligence before proceeding.