The amount of Bitcoin (BTC) held on the exchanges has steadily declined since mid-May, giving reassurance that the worst market sell-off is over.

At the current level, the Bitcoin exchange offer is at its lowest level since the beginning of January, according to the cryptanalysis company Santiment. “Six month lows are a promising sign as this would generally indicate a greater risk of a multi-USD BTC sell-off,” the analyst firm said. tweeted Monday morning.

The ratio of #BitcoinHave deliveries to exchanges
encouraging fell to its lowest level since early January. The six month low is a promising sign as it broadly suggests that the riskier downside is on the way. $ BTC Clearance sale. https://t.co/vFh7pcjUmX pic.twitter.com/t3duiStvg6

– mood (@santimentfeed) July 5, 2021

Inflows into the exchanges began to surge in early May, which could be a precursor to the massive mid-month sell-off of Bitcoin. The Bitcoin sell-off intensified on May 19, culminating in a $ 1.2 trillion decline for the overall crypto market.

Stock market flow data is an important key figure for tracking the price development of Bitcoin in the short to medium term. Net inflows often herald a sharp sell-off as many investors may move their holdings out of cold wallets for sale purposes. Case in point: In May, Bitcoin experienced its largest foreign exchange outflow since the COVID-19 crash in March 2020.

Connected: BTC price is dropping to fill the gap in Bitcoin futures while the focus is on the bull target of $ 46.5,000

While Bitcoin is in a solid medium downtrend, investors are finding more reasons to be bullish. The pace of adoption in countries like Latin America, the expected relocation of mining from China to other regions, and mounting signs that the market has bottomed out are all factors that led to the decline.

On the flip side, analysts continue to warn of an uncertain short-term outlook, with some prominent voices in the industry calling for a steeper correction this year.