Stablecoin Inflows Surpass All Previous Peaks – Is Bitcoin Set For A Major Move?

Bitcoin is fighting to reclaim key resistance levels as macroeconomic uncertainty and trade war fears continue to impact both crypto and equities in the U.S. The leading cryptocurrency has lost over 29% of its value since January, and the downtrend shows no clear signs of reversal yet. As Bitcoin struggles below key levels, investors are questioning whether the bull cycle is over or if the market is setting up for a major comeback.

Despite the negative sentiment, on-chain metrics suggest that demand for BTC and ETH remains strong. CryptoQuant data reveals that the current spread between the Exchange Inflow of all stablecoins on the Ethereum network and the Inflow of BTC + ETH (selling pressure) exceeds all previous peaks in coin demand. Historically, such trends have marked key accumulation zones before price recoveries. Notably, the highest demand for BTC and ETH was recorded near Bitcoin’s all-time high (ATH) at $101K.

While uncertainty persists, this on-chain signal suggests that accumulation may be underway, giving Bitcoin the potential to stabilize and reclaim higher price levels. The next few days will be critical to determining whether bulls can regain control or if further declines are on the horizon.

Bitcoin In Bear Market Territory But Demand Signals A Potential Recovery

Bitcoin has officially entered bear market territory, with many analysts forecasting a deeper correction as fear spreads across global financial markets. Erratic policies by U.S. President Trump, including tariffs and foreign trade decisions, have contributed to economic instability, with rising speculation about a potential recession. These factors have shaken both the crypto and equity markets, leading to a continued decline in Bitcoin’s price.

However, not all analysts agree that the bull cycle is over. Some argue that despite the correction, strong demand remains for BTC and ETH. Top analyst Axel Adler shared insights on X, revealing that the current spread between the Exchange Inflow of all stablecoins on the Ethereum network and the Inflow of BTC + ETH (selling pressure) exceeds all previous peaks in coin demand. Historically, similar trends have marked key accumulation zones before major price recoveries.

Adler highlighted that the highest demand for BTC + ETH was recorded near Bitcoin’s all-time high (ATH) at $101K. Additionally, the metric peaks, marked by green circles, indicate active accumulation periods in the market. As of now, the spread remains above all previous peaks and sits at one standard deviation from the annual average levels.

Since September 2023, Bitcoin has shown sustained demand growth, reflected in the metric’s range curve, which has a slope of approximately 45 degrees. If this trend holds, Bitcoin may be nearing the end of its correction, setting the stage for a potential recovery in the coming months.

Price Struggles Below Key Levels as Bulls Feel The Pressure

Bitcoin is currently trading at $83,500 after losing the 200-day moving average (MA) around $84,300. The ongoing battle between bulls and bears remains intense, with BTC struggling to reclaim key resistance levels. For a recovery to take shape, Bitcoin must push above the $86,000 level with strength, confirming a shift in momentum. This would open the door for a potential retest of the $90K mark, which remains a critical psychological and technical resistance.

However, failure to reclaim $86K in the coming sessions could spell trouble for bulls. If BTC continues to struggle below this level, a drop below the $80K support zone becomes increasingly likely. A break below this level could trigger a deeper correction, potentially leading BTC into the $75K-$78K demand zone.

For now, Bitcoin remains in a consolidation phase below key moving averages, and the lack of bullish momentum raises concerns about further downside risk. Traders and investors will closely monitor whether BTC can regain lost ground or if continued selling pressure will push prices toward lower levels. The next few days will be crucial in determining Bitcoin’s short-term trajectory.

Featured image from Dall-E, chart from TradingView