Someone just asked if depositing 6,200 BTC in the past 24 hours would create selling pressure. Since I hadn’t heard about this data, I went to check. First, looking at exchange reserves, the past 24 hours only saw an increase of around 1,000 Bitcoin deposited—not as exaggerated as 6,000+. Here’s the exchange reserve data from the past week: Secondly, when I looked at exchange position data, I noticed a significant amount of long positions. From the net position data, the three major price surges in the past year were all accompanied by large amounts of BTC being withdrawn from exchanges. During bearish phases, many investors preparing to exit tend to transfer BTC into exchanges, and purchasing power often drops significantly. Here’s the net position data from exchanges over the past year: But now, even though the price has dropped, the amount of BTC leaving exchanges is at its highest in the past year. This indicates that when prices fall, a large number of investors are still buying BTC rather than panic-selling. This is a classic strong accumulation signal, meaning long-term holders are taking advantage of the dip to increase their positions. I know many of you might ask: if buying pressure is so strong, why is the price still dropping? There are mainly two reasons: 1. Heavy short-term selling pressure, with buying power unable to keep up. 2. A lot of passive orders being filled, but fewer active buy orders. Overall, bearish news leads to strong consensus among investors to exit, while short-term buying power isn’t enough to absorb the selling pressure, causing the price to drop. Some investors are only placing “passive” orders, which can slow the decline but won’t push the price up. Price increases are usually driven by active buying. Unfortunately, active buying is currently quite low, which is why the price keeps falling even as more investors are buying. This type of decline is essentially a turnover phase. Once the turnover ends, active orders should start appearing, signaling market stabilization or even a reversal. Sponsored by Bitget ｜ @Bitget_zh