Bitcoins [BTC] price action remains uncertain, with the asset stuck in a bandwidth-bound structure for weeks, trading between $68,000 and $70,000 without a decisive breakout in either direction.
Amid this indecision, new on-chain data and liquidity trends suggest buyers may be trying to regain control. If this shift continues, it could determine Bitcoin’s short-term trajectory.
Active Bitcoin supply is decreasing
Active Bitcoin supply has fallen over the past 30 days, indicating reduced transaction activity within the network. This contraction has several consequences for the broader market.
Under current conditions, the decline indicates fewer coins are changing hands, contributing to moderate volatility.
Lower activity generally reflects caution among participants, especially in an environment where belief remains fragile.
Source: Alpharactal
Recent liquidation data reinforces this picture. In recent days, total liquidations amounted to roughly $132 million – a relatively modest figure compared to periods of heightened volatility.
Liquidations often peak during sharp price swings, so the subdued figure underlines the current market calm.
This trend also indicates that traders are less willing to take on additional risk. Instead, many prefer to hold their assets for longer periods of time.
Holding reduces circulating supply, which can be constructive, especially at a time when demand appears weak and broader sentiment remains cautious.
Demand is showing signs of exhaustion
The net cash flow on the exchanges – a key indicator used to track the inflows and outflows of assets from exchanges – points to weakening demand.
Facts from CoinGlass shows that total Spot accumulation over the past 72 hours was only $238.11 million in net purchases.
Notably, March 1 accounted for more than half of that figure, with $145.22 million in net purchases. Even then, the total size remains limited. About $55.62 million flowed into Bitcoin today alone.
Such demand levels are insufficient to trigger a decisive price move. While some investors remain optimistic, the broader market appears sidelined and cautious.
Source: CryptoQuant
Interestingly, most of the recent purchases have come from whales – large holders with significant capital. Despite their participation, price action has remained largely muted.
Average order size data supports this observation, showing that both large and smaller whales have dominated trading activity for more than eight consecutive weeks.
Yet its accumulation has not translated into a meaningful breakout, underscoring the lack of broader market participation.
Selling pressure remains limited
A constructive development is the steady increase in the number of Bitcoin addresses with profits.
Data from CryptoQuant’s UTXO (unspent transaction output) in profit metric shows that a growing portion of holders are sitting on unrealized profits. Typically, rising profitability can boost sales, putting pressure on prices.
However, the number of active addresses has declined, indicating that many of these profitable holders are not rushing to exit the market. Instead, they seem content.
At the time of writing, the number of profitable UTXOs was approximately 246 million.
Source: CryptoQuant
If this uptrend continues without a corresponding increase in selling activity, Bitcoin could attempt to break above the $70,000 threshold. Still, continued upside potential will require stronger spot market demand.
Without this risk, any breakout risks fading, leaving Bitcoin within its current range.
Final summary
- Active Bitcoin supply has declined over the past 30 days as investors withdraw from their trades.
- Demand has fallen to a remarkable low, even as the number of investors continues to rise in profits.