Bitcoin is signaling a potential return to bullish momentum, driven by a significant reduction in selling pressure across exchanges. This shift is sparking conversations about a possible market rebound, with key on-chain metrics pointing towards increasing stability and renewed investor confidence after a period of price declines.
On-Chain Data Signals Reduced Selling
A primary catalyst for Bitcoin's recent upward movement, which saw it recover from $84,000 to nearly $93,000, is a sharp decline in overall selling activity. Data from CryptoQuant reveals that the Total Exchange Volume plummeted from 88,000 BTC to approximately 21,000 BTC. This substantial drop indicates that fewer investors are transferring their assets to exchanges for liquidation. Further reinforcing this trend, the average deposit size per investor has also decreased from 1.1 BTC to 0.7 BTC, confirming a widespread weakening of sell-side pressure. This reduction is largely attributed to a pause in selling from both large institutional investors, known as 'whales,' and short-term holders (STHs). After realizing significant losses by selling at a negative margin, these key market participants have notably scaled back their deposits, a historical precursor to market rebounds as selling pressure eases once heavy losses are incurred.
Navigating Future Price Trajectories and Expert Insights
With this emerging momentum, analysts project Bitcoin could target the $98,700 resistance level in the near term, with a stronger push potentially extending the rally into the $102,000–$112,700 range. However, industry leaders offer a nuanced perspective on this nascent recovery. Farzam Ehsani, Co-Founder and CEO of VALR, describes the market as being in a "delicate balance," influenced by expectations of eased monetary policy, making it vulnerable to any cooling signals from the Federal Reserve. Similarly, Ray Youssef, CEO of NoOnes, acknowledges the stabilization after heavy selling but cautions that the "buy-side depth required for a sustainable rally is yet to be established," citing weak ETF inflows and shallow spot demand. Despite these reservations, both experts concede that improved market flows and a renewed appetite for risk could pave the way for Bitcoin to reclaim the $100,000 mark, potentially by early 2026.
