Bitcoin Shows Strength Amid Low Exchange Activity

• Bitcoin shows resilience as low exchange deposits signal selling pressure exhaustion, despite global instability.

• Exchange inflows drop to 28,235 BTC, approaching accumulation zones that historically precede market bottoms.

• 90-Day Gradient Oscillator flips positive; short-term momentum strengthens with BTC trading 25% above realized price.

Bitcoin is displaying surprising resilience despite a persistently bearish macro environment and ongoing global instability. According to crypto analyst GugaOnChain, the low volume of deposits into exchanges confirms that selling pressure has largely exhausted.

According to the analyst, recent military tensions in Iran have led to significant increases in the price of oil, with WTI reaching $75 and Brent reaching $82, further pressuring the existing bear market. However, the price of Bitcoin, at $68,637, appears robust, with technical levels nearing the accumulation zone, showing signs of optimism for investors.

Recent data on the inflow of assets into exchanges indicates only 28,235 BTC was transferred on March 3, which is below the 40,000 BTC threshold, showing low selling pressure. It is worth noting that cycle high exchange inflows ranged from 97,587 BTC to 134,619 BTC, while cycle low exchange inflows ranged from 13,994 BTC to 58,584 BTC.

Hence, the current reading indicates a significant drop in spot market selling, which historically precedes market bottoms. “Although global instability and the bear market are expected to persist, the low volume of deposits into exchanges validates the exhaustion of selling pressure in Bitcoin,” noted GugaOnChain.

Momentum Signals Flip Positive

Additionally, the 90-Day Market vs Realized Price Gradient Oscillator flipped positive at 0.07 after hitting -3.22, signaling renewed short-term momentum. Analyst RugaResearch emphasized, “Each time this oscillator recovered from extreme negatives back to positive, the market was already rebuilding underneath.”

The indicator measures the rate of change between market price and realized price, showing that buyers are regaining control. Consequently, Bitcoin’s short-term strength is improving, with the price now 25% above its realized level of $54.5K.

However, long-term momentum is still cautious and subdued as the 365-day SMA still remains at -0.22. This means that confirmation of a recovery is still pending. Nevertheless, it is evident that the rapid change from -3.22 to +0.07 shows that the selling pressure is exhausted and is turning in favor of accumulation.