- Bitcoin exchange deposits drop to 2016 levels while price nears $90K, highlighting stronger HODL sentiment and reduced selling pressure.
- Long-term holders dominate as exchange addresses fall 75 percent since 2021, suggesting strong accumulation amid surging prices.
- Fewer Bitcoin deposits create a supply squeeze effect as demand stays high and long-term investors tighten their grip on holdings.
According to crypto analyst Axel, Bitcoin continues to defy historical behavior as the number of exchange-depositing addresses plummets while prices push toward record highs. The 30-day moving average of depositing addresses has dropped to 52,900—levels last seen in December 2016. In contrast, Bitcoin now trades above $90,000. This divergence between address activity and price action reveals a deep shift in investor behavior. Long-term holders now dominate the market, with many reducing their selling over the past three years.
Address Activity Highlights Long-Term HODL Sentiment
Besides surging prices, the drop in exchange deposits confirms the rising influence of long-term holders. The 365-day moving average stands at 71,100, while the historical distribution peak hit 92,000. Notably, this metric soared to 214,000 addresses in 2021. Now, it has fallen by over 75% from that level.
Hence, investors appear more committed to holding, reducing market supply. This strong HODL sentiment has slashed coin sales by four times since 2022. Additionally, this behavior typically signals bullish undercurrents and lowers overall selling pressure.
Moreover, historical cycles show a similar trend. For instance, address counts surged in early 2018 and 2021 before sharp corrections. Today, the chart highlights a blue-circled region showing the divergence between rising prices and fewer depositing addresses. This gap suggests strong accumulation, not distribution.
Price Patterns Reinforce Optimistic Outlook
Bitcoin’s price continues rising, maintaining its position above $90,000. The black price line on the logarithmic chart spans from $100 in 2015 to today’s highs. Importantly, this upward movement coincides with declining deposit activity.
Consequently, the setup resembles a supply squeeze. Fewer coins move to exchanges, which limits sell-side liquidity. Meanwhile, demand remains elevated, keeping upward pressure on prices. Additionally, the visual data includes reference points like the $3,500 level, which intersected key growth phases in both 2017 and 2019. These markers further emphasize the depth of long-term cycles shaping current momentum.
