Rising BTC exchange inflows from short-term holders raise selling pressure concerns

Most Bitcoin short-term holders have moved back into profit, while the amount of BTC they are sending to exchanges has also increased, potentially raising selling pressure, according to an analysis by on-chain analyst Axel Adler Jr. In a blog post, Adler said the share of short-term holder supply in profit rose to 74.9% from 26.1% on Aug. 17. At the same time, short-term holder exchange inflows increased to positive 28,600 BTC on Aug. 24 from negative 18,700 BTC on Aug. 16. Adler added that if the exchange inflow indicator remains above 25,000 BTC, the share of profitable supply moves closer to 90%, and the price uptrend slows, the risk of short-term overheating and profit-taking could increase. By contrast, if the share of profitable supply stays above 50% while exchange inflows move closer to zero, that could point to a healthier correction.