There has been a notable decrease in Bitcoin selling pressure recently, potentially signaling a price rally.
CryptoQuant Analytics Show Reduced Selling Pressure
According to CryptoQuant data, the average Bitcoin selling pressure on major exchanges has decreased from 81K to 29K BTC per day. This indicates a reduction in sellers and buyer confidence at current price levels. CryptoQuant analyst ShayanBTC notes a sharp drop in BTC reserves on exchanges, which could set the stage for a supply shock-driven price rally.
Potential Bitcoin Price Growth
Axel Adler, a macro researcher at CryptoQuant, argues that the market has successfully absorbed significant profit-taking volumes after surpassing the $100K mark. This has created conditions for a potential future supply shortage. Bitcoin is currently trading at $84,357, with a 3.5% increase over the past 24 hours. Analysts predict that April and May could become a consolidation period before the next growth impulse.
Positive Inflows in Crypto Investment Products
CoinShares data shows that Bitcoin drew about $195 million in inflows last week, despite $2.5 million in outflows for four consecutive weeks. Altcoins also posted a notable turnaround, attracting $33 million after a series of outflows. CoinShares emphasizes that this marks the first week of positive flows for digital assets in over a month, indicating renewed investor confidence in the sector.
The reduction in selling pressure and positive crypto market inflows demonstrate strengthening investor confidence, potentially foretelling a Bitcoin price increase.
