Supply pressure in the crypto market is intensifying amid rising inflows from large investors and continued weak spot demand. This was noted by contributors from CryptoQuant and analysts at XWIN Japan.
According to their observations, the structure of the bitcoin market is beginning to change. Experts recorded an increase in the Whale Inflow Ratio on Binance, a metric indicating a significant share of large transactions in exchange inflows.
“Deposits to exchanges do not necessarily mean immediate sales, but they increase the amount of BTC available for trading or hedging,” the analysts emphasized.
XWIN Japan also noted that exchange reserves of the leading cryptocurrency have turned upward, and the spot cumulative volume delta (CVD) for large investors has shifted from the buying zone to neutral.
“The key question is not just whether large players are selling, but whether there is enough spot demand to absorb the bitcoin returning to exchanges,” the experts added.
If inflows from large holders and reserves continue to grow, and the CVD moves into the selling zone, pressure on the price of the leading cryptocurrency may increase, XWIN Japan clarified.
Stop Chasing the Bottom
Technical analyst known as Crypto Dan criticized attempts to “catch” the absolute bottom of bitcoin.
He noted that in a prolonged bear market, the average cost for holders begins to decrease due to losses being realized by those who bought at higher prices, and the transfer of coins to stronger participants.
According to him, during this phase, gradual accumulation can be beneficial over the long term. Crypto Dan added that the “window of opportunity” is usually open longer than the market expects, but it is precisely then that most participants exit.
At the time of writing, the leading cryptocurrency is trading at $63,400, having fallen 3% over the week.
Earlier, on August 12, analysts at Glassnode warned of the risk of bitcoin retreating to $58,500.
