Bitcoin selling pressure eases as sellers ‘dry up’ and buyers show confidence

On-chain data from CryptoQuant revealed that the average Bitcoin selling pressure on top exchanges has plummeted from 81K to 29K BTC per day. The analytics firm showed that Bitcoin sellers had dried up, and buyers seemed comfortable with current price levels.

CryptoQuant analyst ShayanBTC also noted that BTC reserves on exchanges are rapidly decreasing. The analyst argued that a decline in exchange reserves could set the stage for a supply shock-driven price rally, reversing Bitcoin’s recent downtrend.

Bitcoin selling pressure reduces nearing demand

CryptoQuant data showed the average selling pressure on top exchanges has dropped from 81K to 29K BTC per day. The analytics firm suggested that Bitcoin is nearing the zone of asymmetric demand as BTC exchange inflows approach 2-year low.

Macro researcher at CryptoQuant Axel Adler argued that the digital asset market had successfully absorbed waves of profit-taking following its break above $100K. Adler also suggested that sellers had dried up, and buyers seemed comfortable with current price levels. He believes that BTC’s current level has set the stage for a structural supply shortage.

On-chain data showed that Bitcoin is currently exchanging hands at $84,357 at the time of publication, a 3.5% increase in the last 24 hours. BTC also recorded a daily volume of $27.3B, a 37.55 increase in the past 24 hours.

Adler also argued that April to May could turn into a consolidation zone, “a calm before the next impulse.”

Total Bitcoin inflow in all exchanges. Source: CryptoQuant.

CryptoQuant analyst Ibrahimcosar posted on March 28 that Bitcoin may be on the verge of a significant price rally. He noted that since February 6, the digital asset has experienced a persistent negative net flow across trading platforms.

The analyst argued that when a large quantity of BTC is withdrawn from exchanges, it often indicates that investors are expecting a price rally. He believes that investors move their holdings to cold wallets in anticipation of long-term gains and pay network fees to secure their assets. Ibrahimcosar acknowledged that the behavior results in a negative net flow of BTC across exchanges, which is a bullish indicator.

“Historically, such high outflows have led to significant price increases in Bitcoin. This suggests that market volatility to the upside could be on the horizon.”

– Ibrahimcosar , analyst at CryptoQuant.

Crypto investment products record positive inflows

On-chain data from CoinShares also noted that Bitcoin drew roughly $195 million in inflows last week. The firm also acknowledged that BTC saw $2.5 million in outflows for the fourth consecutive week, which suggested that bearish bets were fading.

The analytics firm also showed that altcoins posted a notable turnaround, with $33 million in inflows after four consecutive weeks of outflows totaling $1.7 billion. Ethereum led with $14.5 million inflows, followed by Solana with $7.8 million, and XRP and Sui with $4.8 million and $4M inflows, respectively.

CoinShares maintained that it marked the first week of positive flows for digital assets in over a month, which highlighted renewed confidence in the sector. The firm also revealed that global crypto investment products recorded $226 million worth of net inflows last week.

CoinShares Head of Research James Butterfill argued in a Monday report that the second consecutive week of inflows suggested a “positive but cautious” investor. He also noted that ETPs had seen 9 consecutive trading days of inflows, last Friday being the exception after recording outflows totaling $74 million. Butterfill believes it was likely in reaction to core personal consumption expenditure in the U.S. coming in above expectations. He added that the economic data implied the Federal Reserve was likely to remain hawkish despite recent data alluding to weak growth.

Research analyst Ryan Lee mentioned that President Trump’s proposed tariff hikes including a 25% levy on Mexican and Canadian goods effective April 2 – had resumed trade war anxieties. Lee argued that such protectionist measures trigger risk aversion across asset classes, “and crypto has not been immune.”

Butterfill also revealed that Bitcoin ended up falling around 6% over the past week and the recent price falls had pushed global BTC investment products’ total assets under management to their lowest level since the U.S. presidential election in November at $114 billion.

CoinShares data also showed that U.S. investors led regionally, accounting for $204 million of last week’s net inflows. Switzerland and Germany also witnessed positive flows for the second week in a row, adding $14.7 million and $9.2 million, respectively.

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