Bitcoin's Selling Intent Hits 10-Year Low Amid Market Caution

Market Overview

Bitcoin is currently holding above $70k, signaling a decade low in selling intent. Following recent market adjustments, BTC has maintained its price above this level for three consecutive days. With global market tensions easing, Bitcoin has shown slight bullish momentum, trading at $71,021 after a minor daily drop of 0.93%.

Exchange Depositing Addresses Decline

Data from Darkfost reveals that Bitcoin's Exchange Depositing Addresses have hit a ten-year low, reflecting diminished intent to sell even amid broader market weakness. Currently, only 31,000 depositing addresses are active daily, a significant drop from an annual average near 47,000, reminiscent of market conditions observed in 2017.

Market Implications

This sharp decline in depositing addresses often aligns with advanced bear market phases, resulting in reduced trader activity. Most participants appear to be waiting for more favorable market conditions to reengage rather than selling their holdings.

Institutional Selling Pressure

Despite low exchange deposits, institutional investors continue to sell, particularly within BTC Spot ETFs. Over the past two days, ETFs have seen outflows totaling $283 million with negative net inflows persisting for nine days in the last fortnight, indicating significant selling from larger stakeholders.

Future Market Trends

The current momentum indicators suggest weakening market engagement. The momentum (MOM) indicator is currently at -5957, reinforcing bearish sentiment. Although Bitcoin holds above $70k, there is potential for a decline below this threshold, with $66k identified as support. Conversely, should the market react positively to reduced exchange inflows, Bitcoin might stabilize above $70k with sights set on $74,200.