Mapping Bitcoin’s liquidity slowdown as old coins re-enter circulation
Bitcoin's rally is showing signs of strain as long-held coins begin to re-enter circulation, signaling potential distribution alarms for the first time in its history. Key indicators, including the Reserve Risk metric, suggest early holders are steadily releasing BTC into the market, often through exchanges, ETFs, and institutional vehicles. This movement coincides with declining liquidity, as evidenced by the falling Inter-exchange Flow Pulse (IFP), which has dipped below its 90-day moving average—a pattern historically associated with slower or corrective market phases. Despite trading near $90,000, Bitcoin remains below key moving averages, with the RSI showing neutral momentum and on-balance volume flattening, indicating a lack of fresh demand. The market appears to be entering a consolidation stage, with thinning capital flows posing challenges for near-term upside momentum.
ambcrypto12/13 17:04