Bitcoin surged past $80,000 in the last 24 hours, though the market is flashing mixed signals on whether demand is returning or a local high is forming. Data from Alphractal shows Bitcoin’s 1-year active supply dropped to 7.49 million, indicating fewer coins are being moved from wallets. Exchange reserves tracked by CryptoQuant fell from 2.73 million on August 17 to 2.70 million, meaning less Bitcoin is available for sale on exchanges. However, sellers offloaded roughly $1.2 billion worth of BTC between August 23 and September 1, averaging $120 million in daily sales. Bitcoin’s apparent demand flipped negative in the last 24 hours, and netflows saw approximately 127,940 Bitcoin exit exchanges, pointing to weaker demand. The $76,000 level remains a key test for the cryptocurrency.
Bitcoin’s climb past $80,000 has raised pressing questions about whether the cryptocurrency can maintain its bullish momentum. The timing is notable because the market has been showing mixed signals on whether a rebound is taking shape or a local high could lead to a drawdown.
According to Alphractal, Bitcoin’s 1-year active supply recently dropped to a low of 7.49 million. This metric represents how much Bitcoin is active in the market, and a significant decline suggests fewer coins are being moved from wallets.
A drop to this level over a 12-month period typically indicates a strong willingness among investors to hold. Such behavior is often driven by expectations of a rally in the near to long term.
CryptoQuant data showed that Bitcoin’s exchange reserves fell after reaching a local peak of 2.73 million on August 17. Reserves had dropped to 2.70 million at the time of writing, meaning less Bitcoin is available to be sold on the market.
A decline in BTC balances across exchanges can protect the price from a sudden crash to some extent. However, there is no clear sign that the bottom for Bitcoin is in yet.
Recent data indicated that while market activity has been subdued, Bitcoin’s rally has faced significant sell pressure. Sellers offloaded roughly $1.2 billion worth of BTC between August 23 and September 1, averaging about $120 million in daily sales.
Bitcoin’s apparent demand also flipped negative over the last 24 hours, suggesting that distribution may be ongoing. CryptoQuant also revealed that netflows saw roughly 127,940 Bitcoin exit exchanges, alluding to weaker demand and a gradual hike in available supply.
This remains a key threat to the price, and the $76,000 level will be a key test for Bitcoin. Despite the recent move past $80,000, sellers are using the rally to take profits while the market shows no clear confirmation of a Bitcoin bull run.
