Analyst: Long-Term Holder Bitcoin Continues to Flow Back to CEX, Bitcoin May Struggle to Sustain Rally

BlockBeats News, June 8th, analyst Shayan quoted CryptoQuant data indicating that the on-chain platform inflow "Spent Output Age Bands" chart shows a significant increase in the amount of old coins being deposited into exchanges, especially coins held for 3-6 months and 6-12 months. The recent spikes in inflows are among the largest visible peaks on the chart, and all have occurred during periods of prolonged Bitcoin price decline.

In history, large inflows of coins from long-term holders to exchanges have often signaled intensifying sell-off activities, as coins dormant for months are moved to exchanges, likely for impending sale. While individual spikes do not necessarily indicate further decline, repeated surges in inflows during a bear market often reflect waning holder confidence.

The latest data shows that mid-term holders have become more active during the recent pullback. If these inflows persist, they will continue to exert selling pressure, making it challenging for Bitcoin to sustain a recovery in the short term. Overall, Bitcoin is attempting to hold the key support area of $60,000-$62,000. Although a short-term rebound is currently underway, both market structure and on-chain activities indicate that bulls still have a lot of work to do before confirming a broader trend reversal.