On Wednesday, Bitcoin’s price pulled back to the $93,000 level as bullish market performance waned before recovering above $94,000 a few hours later. Instead of sparking bearish sentiment among investors, the pullback seems to have done the opposite, as BTC holders in major crypto exchanges are exhibiting optimistic behavior toward the flagship digital asset.
Long-Term Bitcoin Holders Sell Activity Hit The Brakes
Bitcoin may have displayed weakening momentum, but sentiment among investors appears to have shifted toward a positive outlook. BTC holders on the largest crypto exchange, Binance, are beginning to hold on to their coins in anticipation of a continued rally.
On-chain market expert and founder of Alphractal, Joao Wedson, reported that Binance Bitcoin holders have eased off the selling pressure, providing a possible reprieve from recent market pressure. “After months of dumping BTC on Binance, the network veterans seem to be taking a break,” Wedson stated.
This positive behavior is particularly spotted among long-term BTC holders on the leading crypto exchange. BTC long-term holders‘ reduction in selling pressure is often considered a bullish development and is thought to be the foundation of price stability. Even as BTC’s price hovers near key resistance levels, this reduced sell activity from these investors on Binance suggests rising confidence in the asset’s upside prospects.
Data from the Bitcoin Exchange Inflow Spent Output Age Bands metric on Binance shows that old BTC is no longer being sent to crypto exchanges, unlike in the past. It is worth noting that old BTC are classified as coins purchased by investors over 6 months, 1 year, and 3 years ago.
Presently, the expert highlighted that there are no clear signs of distribution or selling pressure from experienced hands. According to the expert, these major BTC investors have already distributed and sold their coins in 2024.
Spot Buying Volume On The Rise
Investors’ rising conviction toward BTC is also reflected by a rise in spot buying volume above selling volume on Binance. After over 6 months, this is the first time that spot buying volume has surpassed spot selling volume on the crypto exchange, marking a notable shift in sentiment.
Wedson highlighted the development of the Cumulative Volume Delta (CVD) metric, which measures the difference between buy and sell volumes over time. Data reveals that the Cumulative Volume Delta metric has persistently risen since the $75,000 low, suggesting that cumulative purchasing pressure has been outweighing selling pressure.
Furthermore, attention has long been focused on Spot’s CVD on Binance because it has maintained a consistent downward trend since 2021 and hardly ever sustains positive growth. Thus, Wedson has stressed the importance of monitoring this crucial metric daily to gauge risk appetite and buying interest on the Binance exchange.
Featured image from Pixabay, chart from Tradingview.com
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