Over the past two weeks, the Bitcoin market has seen a clear dominance of sellers, with no significant impact from bulls on the price. As the flagship cryptocurrency fell into recession, investors increasingly fled the market out of fear, causing prices to fall even further. However, as Bitcoin’s price appears to have stabilized, an captivating on-chain discovery has also emerged. If this change proves to be indefinite, it could mean something positive for the world’s leading cryptocurrency.

Acceleration of OTC outflows – a sign of a possible reversal?

In his latest post on CryptoQuant PlatformCoinNiel shares an thrilling Bitcoin price hypothesis based on data from Bitcoin: Total OTC Desk Balance. The analyst points out that the Bitcoin price may be at a point where a trend reversal will be inevitable. For context, the Bitcoin: Total OTC Desk Balance indicator measures the total amount of Bitcoin currently held in wallets associated with over-the-counter (OTC) trading desks. When the balance grows, it often means that more BTC is transferred to OTC desks. It is also a clear sign of growing selling appetite among enormous Bitcoin holders.

On the contrary, falling values ​​of this indicator usually indicate that Bitcoin is being withdrawn from OTC stands. Consequently, this may mean that institutional demand is growing or that enormous holders are no longer positioning themselves to sell. As per the chart shared below, the total OTC Desk balance has undergone a keen downward trend, which means that a significant amount of BTC has been sent from the OTC market. It is worth noting that this change in investor behavior occurs around the same time that Bitcoin regained its value of $68,000.

As a result, BTC market sentiment appears to be shifting from despondent to slightly confident: instead of BTC being accumulated for sale, OTC balances are instead shrinking. This could be due to increased buying from enormous holders or reduced selling appetite among Bitcoin market participants.

In the scenario of increased institutional accumulation of Bitcoin, this may mean that the Bitcoin price will soon make a huge upward move. On the other hand, reduced selling activity is also beneficial for the price of Bitcoin, as it translates into reduced selling pressure, allowing for a short-term rebound in the price of the flagship cryptocurrency. Therefore, CoinNiel stipulates that the true factors behind these dynamics are yet to be confirmed. As a result, investors and other market participants should remain vigilant when interacting with the Bitcoin market.

Bitcoin price at a glance

At press time, Bitcoin is valued at $67,953, reflecting a 24-hour devaluation of 0.17%, according to CoinMarketCap data. Over the past seven days, the flagship cryptocurrency has so far lost approximately 2.81% of its value.