The cryptocurrency market is experiencing increased supply pressure, driven by a surge in large investor inflows while spot demand remains weak. This observation was made by contributors from CryptoQuant and analysts at XWIN Japan.

They noted that the dynamics of the Bitcoin market are shifting. There has been a rise in the Whale Inflow Ratio on Binance, a metric that indicates a significant proportion of large transactions contributing to inflows on the exchange.

Source: CryptoQuant/XWIN Japan.

"Deposits on exchanges do not necessarily mean immediate sales, but they do increase the amount of BTC available for trading or hedging," the analysts emphasized.

XWIN Japan also pointed out that reserves of the leading cryptocurrency have turned upwards, while the cumulative volume delta (CVD) for large investors has shifted from a buying zone to neutral.

"The key question is not just whether large players are selling. It's whether spot demand will be sufficient to absorb the Bitcoin returning to exchanges," the experts added.

If the inflows from large holders and reserves continue to rise, and if the CVD shifts into a selling zone, the price pressure on the leading cryptocurrency may increase, XWIN Japan clarified.

No More Searching for the Bottom

A technical analyst known as Crypto Dan criticized the attempts to "catch" the absolute bottom of Bitcoin's price.

Source: CryptoQuant/Crypto Dan.

He pointed out that during a prolonged bear market, the average cost basis for holders begins to decrease due to losses being realized by those who entered at higher prices, leading to coins being transferred to stronger hands.

According to him, gradual accumulation during this phase can be beneficial over the long term. Crypto Dan added that the "window of opportunity" typically remains open longer than the market expects, yet it is often when most participants exit.

At the time of writing, the leading cryptocurrency is trading at $63,400, having declined by 3% over the past week.

Hourly chart of BTC/USDT on Binance. Source: TradingView.

On August 12, analysts from Glassnode warned of the risk of Bitcoin retracing to $58,500.