▲ Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC) has effectively subdued selling pressure and laid the foundation for a long-term upward trend, supported by a depletion of exchange reserves and a sharp recovery in spot demand.

According to crypto media outlet Cryptopotato, recent on-chain data signals both weakening selling pressure and a strong influx of dip-buying, indicating structural improvement in the market. Bitcoin holdings on major exchanges have fallen to their lowest levels in years, proving that investors are moving assets to private wallets for long-term holding rather than selling.

Key indicators, including the Market Value to Realized Value (MVRV) ratio, suggest that Bitcoin’s price has moved past an overheated phase and is now in a healthy correction range. In particular, institutional funds flowing through spot Bitcoin ETFs have formed a strong defensive barrier during price declines, offsetting selling pressure. Analysts interpret this as a typical sign of seller exhaustion and assess the likelihood of further price declines as low.

The movements of whale investors also indicate that Bitcoin’s supply-demand cleansing phase is nearing its end. Large-scale investors have continued aggressive accumulation below the $64,000 range, and the increase in spot demand is putting pressure on short sellers in the futures market. With liquidity supply remaining limited, the recovery in demand is expected to serve as a catalyst for a sharp price rebound.

Bitcoin has now entered a new phase beyond short-term price fluctuations, where its asset scarcity is becoming increasingly prominent. With solid spot demand aligning with rapidly shrinking supply, the market’s fundamentals are stronger than ever.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.

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