Mid-Term Bitcoin Holders Send More Coins to Exchanges, Raising Sell Pressure

Bitcoin is holding a support zone in the low-$60,000 range, but inflows from mid-term holders to exchanges are increasing, adding to supply pressure, according to a CryptoQuant analysis. While the token has staged a short-term rebound, on-chain supply pressure remains in place and a trend reversal may take more time to confirm.

Shayan, a contributor to CryptoQuant Quicktake, wrote on June 8, citing the firm's exchange inflow indicator, that deposits of older Bitcoin to exchanges have risen noticeably.

Inflows to exchanges increased notably for coins held for three to six months and six to 12 months. Shayan wrote that the recent surge ranks among the largest on the chart and came as Bitcoin extended its decline.

The movement of long-held Bitcoin to exchanges may signal growing distribution activity. When coins that have been dormant for months start moving onto exchanges, the potential for selling rises.

A single spike in inflows does not automatically point to further declines, he added. But repeated increases in exchange inflows during a downtrend can indicate that holder conviction is weakening.

Shayan said activity among mid-term holders has picked up during the recent correction. If these inflows continue, they could increase supply pressure and make it harder for Bitcoin to sustain a short-term recovery.

Bitcoin is currently defending a key support zone around $60,000 to $62,000. "A short-term rebound is underway, but when market structure and on-chain flows are considered together, there are still several hurdles to clear before a bullish reversal can be confirmed," Shayan wrote.