The selling pressure on Bitcoin continues to decrease, while inflows of BTC to exchanges reach a low point. This could indicate a period of consolidation, where investors are holding their positions in anticipation of the next market move.

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Bitcoin Supply Declining: What Does This Mean for the Market?

In recent months, there has been a clear decrease in the amount of Bitcoin being sent to exchanges. Since November, the average BTC inflows to exchanges have dropped by as much as 64%. This suggests that fewer investors are selling their Bitcoin, which could lead to more stable price movements. Check out our weekly Bitcoin price analysis here.

Less Selling Pressure, Stronger Foundation

The market has recently gone through several periods of profit-taking, especially after Bitcoin broke the $100,000 mark. Despite this, selling pressure continues to decrease, while buyers seem ready to step in at current price levels. This could be a strong indication that there is a structural supply shortage forming.

With decreasing selling pressure, it becomes more likely that Bitcoin will enter a new phase of price development. April and May could form a period of consolidation, where the market prepares for the next major move.

What Can We Expect?

Although the long-term trend appears positive, the market remains dynamic and volatile. The amount of Bitcoin being sent to exchanges is just one of many indicators that can help assess the market direction. A further decline in selling pressure could mean that demand will outstrip supply, potentially contributing to further price increases.

Despite these developments, it's important to always conduct thorough research and remain aware of the risks involved in crypto investing. The market remains unpredictable, and trends can change rapidly.

Disclaimer: This is not financial advice. Always consider doing your own research and seeking professional advice.