Bitcoin’s Recovery Potential Grows as Exchange Selling Pressure Eases

• Exchange inflows have decreased significantly, reducing overall selling pressure on Bitcoin.

• Average deposits per investor fell from 1.1 BTC to 0.7 BTC, indicating waning bearish sentiment.

• On-chain metrics show short-term holder SOPR at 0.97, a level historically preceding price rebounds, with potential upside to $102,000.

Discover how declining Bitcoin selling pressure is fueling a market recovery. Explore on-chain data, expert insights, and price targets in this analysis for investors eyeing the next rally.

What Is Causing the Drop in Bitcoin Selling Pressure?

Bitcoin selling pressure has eased considerably due to a sharp reduction in exchange inflows and deposits from key market participants. This shift follows Bitcoin’s recovery from $84,000 to around $91,400, as total exchange volume plummeted from 88,000 BTC to approximately 21,000 BTC. The decline reflects diminished activity from whales and short-term holders, setting the stage for renewed bullish momentum in the cryptocurrency market.

The regulatory landscape continues to influence investor behavior, with ongoing discussions about potential rebounds highlighting the importance of monitoring exchange metrics. As Bitcoin stabilizes, this lower selling pressure could propel prices higher in the coming weeks, supported by historical patterns observed in on-chain data.

Source: CryptoQuant

When exchange deposits increase, it typically signals that investors are preparing to sell their holdings. The recent drop suggests the opposite: a gradual return of bullish strength. Data from CryptoQuant indicates that average deposits per investor have also decreased from 1.1 BTC to 0.7 BTC. This reduction primarily involves two groups—large-scale whales and short-term holders—who have scaled back their selling activities. Such patterns often precede periods of price stabilization and upward movement in Bitcoin’s market cycle.

Bitcoin’s price action in recent sessions has shown resilience, climbing from a low of $84,000 to nearly $93,000 before settling around $91,400. This recovery aligns with broader market dynamics, where reduced liquidity on exchanges has limited downward pressure. Analysts monitoring these flows note that sustained low inflows could reinforce investor confidence, potentially leading to higher trading volumes on the buy side.

How Are Whales and Short-Term Holders Influencing Bitcoin’s Recovery?

Whales and short-term holders (STH) have played pivotal roles in the recent dynamics of Bitcoin selling pressure. Over the past month, whale deposits to exchanges dropped from 47% to 21%, with both new and established large holders pulling back. Similarly, STH activity has mirrored this trend, contributing to an overall easing of sell-offs.

This phase of reduced selling came after periods where these groups realized losses, as indicated by the Spent Output Profit Ratio (SOPR) for STH dipping to 0.97—a metric below 1 signifying sales at a loss. Whales offloaded approximately $3.2 billion in Bitcoin during this time, but the subsequent stabilization in SOPR suggests that the capitulation phase may be nearing its end. According to on-chain analytics from CryptoQuant, historical data shows that when loss realization reaches certain thresholds, it often marks the bottom of selling pressure, paving the way for rebounds.

“Historically, selling pressure eases when market participants realize they have incurred heavy losses,” notes an analysis from CryptoQuant. This insight underscores the psychological shift among investors, where further selling becomes less appealing after heavy discounting.

Source: CryptoQuant

While it’s unclear if the peak of this loss realization has fully passed, emerging momentum indicators point toward an approaching rebound. If current trends persist, Bitcoin could target $98,700 as a key resistance level. On-chain traders project that a decisive breakout might extend gains to the $102,000–$112,700 range, based on historical resistance zones and volume profiles.

Broader market factors, including macroeconomic signals, further support this outlook. Expectations around Federal Reserve policy adjustments have tempered aggressive selling, allowing Bitcoin to consolidate. Regulatory clarity in major markets could amplify these effects, encouraging more institutional participation and reducing volatility from retail-driven dumps.

Frequently Asked Questions

What Does the Decline in Bitcoin Exchange Volumes Mean for Investors?

The drop in Bitcoin exchange volumes from 88,000 BTC to 21,000 BTC signals reduced selling intent, often a precursor to price appreciation. Investors should view this as a bullish indicator, suggesting accumulation phases where holders retain assets off exchanges for long-term storage. Monitoring continued low inflows can help gauge sustained recovery strength.

Will Bitcoin Reach $100,000 Soon with Lower Selling Pressure?

Yes, with selling pressure easing, Bitcoin’s path to $100,000 appears viable in the near term, driven by on-chain stabilization and expert projections. Improved ETF inflows and spot demand could accelerate this, though macro uncertainties like Fed decisions remain key watches for timing the rally effectively.

What Are the Experts Saying About Bitcoin’s Market Setup?

Industry experts highlight a fragile yet improving environment for Bitcoin, influenced by cooling sell-offs and macroeconomic tensions. Farzam Ehsani, Co-Founder and CEO of VALR, describes the market as in a “delicate balance,” driven by hopes for Federal Reserve monetary easing. He warns that this setup makes Bitcoin “highly vulnerable to any cooling signal from the Federal Reserve,” with its current narrowing range around $92,000 building tension for a potential breakout.

Ehsani emphasizes that such consolidation often precedes significant moves, advising caution amid policy uncertainties. Similarly, Ray Youssef, CEO of NoOnes, attributes Bitcoin’s rebound to stabilization post-forced liquidations and long-term holder sales. He notes that while sell pressure has subsided, “the buy-side depth required for a sustainable rally is yet to be established,” citing weak ETF inflows and limited spot buying.

Youssef remains optimistic, stating that enhanced liquidity and risk appetite could propel Bitcoin toward the upper range and $100,000 by early 2026. These views align with data from sources like CryptoQuant, reinforcing that expert analysis complements on-chain evidence for informed decision-making in volatile markets.

Key Takeaways

• Reduced Exchange Inflows: Bitcoin’s total exchange volume has fallen sharply, easing selling pressure and supporting price recovery from recent lows.
• Whale and STH Behavior: Declines in deposits from these groups, coupled with SOPR at 0.97, indicate capitulation and potential for bullish reversal.
• Price Targets Ahead: Momentum could drive Bitcoin to $98,700 short-term, with extensions to $102,000–$112,700 if resistance breaks.

Conclusion

In summary, the drop in Bitcoin selling pressure, evidenced by lower exchange volumes and reduced whale and short-term holder activity, points to a strengthening recovery. On-chain metrics from CryptoQuant and insights from experts like Farzam Ehsani and Ray Youssef underscore this positive shift amid regulatory and macro influences. As Bitcoin eyes key resistance levels, investors should stay vigilant for sustained inflows, positioning for potential gains toward $100,000 and beyond in the evolving cryptocurrency landscape.