The price of Bitcoin (BTC) has decreased by nearly %1 again today, continuing its broad downward trend that has caused it to decline by %3.6 so far this month. However, two key indicators currently suggest a decline in selling pressure.
Some analysts have warned that buying strength remains weak, reducing the chances of a significant price increase at least in the near term.
Key metrics show reduced selling pressure on Bitcoin.
Data from CryptoQuant clarified that the "Bitcoin Destroyed Days" (CDD) index has experienced a significant decline. To clarify, the CDD index tracks the duration that Bitcoin remains unspent before being moved.
When older coins are moved, more destroyed days occur, which often indicates distribution of coins by long-term holders. High CDD levels are typically associated with selling pressure from these investors, while low readings indicate that long-term Bitcoin holders are retaining their coins.
DarkFrost wrote that the community has now entered a period that has exceeded a month since the significant Bitcoin movement from Coinbase. As a result, all medium-term data is gradually returning to normal levels. When looking at the Bitcoin Destroyed Days (CDD) index, we can clearly observe a sharp decline following that event. Interestingly, this decline reached a much lower level than the previous peak.
The analyst stated that this shift indicates that the activity of long-term Bitcoin holders has begun to calm down. Bitcoin is moving less frequently between old wallets. DarkFrost added that this shift has broader implications for the market.
He pointed out that this decline in CDD is a positive signal, as long-term Bitcoin holders still represent the largest potential source of selling pressure, given that they hold the largest share of the total supply.
The analyst also confirmed that the continued decrease in selling pressure from long-term Bitcoin holders contributes to easing overall market tension, and if this trend continues, it could lead to a market bottom.
Another indicator from Bitcoin ETF flows shows that since early November, the 30-day moving average (30D-SMA) of net Bitcoin flows in Bitcoin ETFs has remained in negative territory, reflecting continued net outflows.
Nevertheless, notice the gradual decrease in the severity of these negative readings. The 30-day simple average is now approaching zero, indicating a decline in outflows from Bitcoin exchange-traded funds compared to previous levels.
Data from SoSoValue reflects this trend as well. On December 15, net outflows reached $357.69 million. This figure shrank to $277.09 million on December 16 and $161.32 million on December 18.
Outflows continued to decline, reaching $158.25 million on December 19 and $142.19 million on December 22. However, note that despite the daily figures dropping, this does not indicate a clear directional change.
At the same time, analysts from 10x Research indicated that market conditions are changing. The firm, which took a negative stance since October, has noticed ongoing shifts in derivatives, exchange-traded funds, and technical analysis signals.
The 10x Research publication mentioned that after taking a negative stance, today and the specified hour for the upcoming Bitcoin purchase are approaching. The largest Bitcoin options expiration ever is nearing, as the open prices and open interest levels reveal places of accumulated pressure and opportunities. At the same time, previous year-end patterns suggest that periods of extreme caution can quietly pave the way for sudden shifts in sentiment once timelines and risk budgets are reset. Technical conditions are also evolving, indicating that the balance between bearish exhaustion and bullish options has become more complex.
Despite these signals, a potential rise typically requires a stronger and more consistent return of demand. BeInCrypto reported that stablecoin reserves on major exchanges have declined significantly, with outflows amounting to approximately $1.9 billion over the past thirty days.
This decline suggests a weakness in immediate purchasing power and continued caution among market participants. Additionally, CryptoQuant's CEO Ki Young Ju pointed out that recovering market sentiment could take several months to develop.
