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The price of Bitcoin (BTC) is up almost 1% again today, continuing its broad downward trend that has seen it fall by 3.6% so far this month. However, two main indicators currently point to a decrease in selling pressure.
Some analysts have warned that purchasing power remains weak, reducing the chances of a significant price rally at least in the near term.
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Key metrics show reduced selling pressure on Bitcoin
Data from Cryptoquant explains that the Bitcoin Destructive Days (CDD) indicator has seen a significant decrease. To illustrate, the CDD indicator tracks how long Bitcoin remains unspent before being moved.
When older coins are transferred, more days of the coin are destroyed, and this often indicates that the coins have been distributed by their long-term holders. High levels of CDD are usually associated with selling pressure from these investors, while low readings indicate that long-term Bitcoin holders are holding on to their coins.
Darkvost wrote that the community has entered more than a month since the big movement of Bitcoin from Coinbase. As a result, all average data gradually returns to normal levels. When you look at the Bitcoin Destructive Days (CDD) indicator, we can clearly see a sharp decline after that event. Interestingly, this decline reached a much lower level than the previous peak.
The analyst said that this change indicates that the activity of long-term Bitcoin holders is starting to cool down. Bitcoin moves less frequently between older wallets. This change has broader market implications, Darkfoust added.
He noted that this drop in CDD is a positive sign, as long holders of Bitcoin continue to represent the biggest potential source of selling pressure, since they hold the largest part of the total supply.
The analyst also emphasized that the continued decrease in selling pressure among long-term Bitcoin holders contributes to alleviating the general tension in the market and if this trend continues, it may lead to the formation of a market bottom.
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Another indicator of Bitcoin ETF flows emerges. Since early November, the thirty-day moving average (30D-SMA) of Bitcoin net inflows into Bitcoin ETFs has been in negative territory, reflecting continued net inflows.
However, notice that the severity of these negative readings gradually decreases. The 30-day simple average is now close to zero, indicating a decrease in Bitcoin ETF flows compared to previous levels.
The SoSoValue data also reflects this trend. On December 15, net inflows reached $357.69 million. This number decreased to $277.09 million on December 16 and $161.32 million on December 18.
Outflows continued to decline, reaching $158.25 million on December 19 and $142.19 million on December 22. However, note that even if the daily numbers are down, this does not prove that this is happening. A clear change in trend.
At the same time, 10x Research analysts noted that market conditions are changing. The company, which has taken a negative stance since October, noted that changes are underway in derivatives, ETFs and technical analysis signals.
The post of 10x Research stated that after taking a negative stance, the exact day and time to buy Bitcoin has arrived. The biggest Bitcoin options expiration is approaching, as open prices and the level of open interest reveal where the pressure and opportunities are piling up. At the same time, the patterns from the end of last year suggest that periods of extreme caution could quietly set the stage for sudden changes in mood once the timing and risk balances reset. Technical conditions are also evolving, suggesting that the balance between downside exhaustion and upside options has become more complex.
Despite these signals, a potential rally usually requires a stronger and more consistent return in demand. BeInCrypto reported that stablecoin reserves on major exchanges have decreased significantly, with capital outflows of approximately $1.9 billion over the past 30 days.
This decline suggests weak immediate buying power and continued caution among market participants. Additionally, CryptoQuant CEO Ki Young Joo noted that market sentiment may recover It takes several months to develop.
