Bitcoin (BTC) Faces a New “Consolidation Zone” as Exchange Inflows Tag Multiyear Lows, New Analysis Says

Bitcoin (BTC) faces a new “consolidation zone” as exchange inflows tag multiyear lows, new analysis says.

Bitcoin (BTC) is facing a new “consolidation zone” as exchange inflows tag multi-year lows, new analysis says.

In an April 1 post on X, Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, declared that Bitcoin sellers had “dried up.”

Average exchange inflows down 64% since November

Bitcoin sell-side pressure has eased considerably since its first push above the $100,000 mark in late 2024.

Analyzing BTC inflows to major crypto exchanges, Adler revealed a sharp drop in the seven-day average total sent for sale.

“The average selling pressure on top exchanges has dropped from 81K to 29K BTC per day,” he said alongside a CryptoQuant chart.

The market has successfully absorbed waves of profit-taking following the break above $100K.

It seems like sellers are finally drying up.

Average selling pressure on top exchanges used to be 81K BTC per day in November, now it's 29K BTC.

The total amount of BTC sent to exchanges is also at a 5-month low. pic.twitter.com/rJq1W96J8Z

— Axel Adler Jr. (@AxelJr9) April 1, 2024

On March 23, seven-day average inflows hit their lowest levels since May 2023, when BTC/USD traded at less than $30,000.

Given that current prices are almost three times that amount, Adler sees the potential for light at the end of the end for a 2025 Bitcoin bull market correction.

“The market has successfully absorbed waves of profit-taking following the break above $100K,” he concluded.

Binance inflows hint at a ‘more neutral stance’

As Cointelegraph reported, signs already hint that market sentiment is becoming aligned with price reality.

The Coinbase Premium, which acts as a proxy for US exchange demand, continues to circle neutral levels, recovering from negative territory despite no real price rebound.

That said, short-term analysis warns of a fresh uptick in inflows this week — with the exception of global exchange Binance.

“Short Term Holders are sending significantly less BTC to Binance — only 6,300 BTC, compared to an average of 24,700 BTC to other exchanges,” CryptoQuant contributor Joao Wedson, founder and CEO of data analysis platform Alphractal, noted in one of its “Quicktake” blog posts.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.