Bitcoin is currently facing a new phase of consolidation as exchange inflows reach multi-year lows, according to recent analysis. This means that the pressure from sellers has significantly decreased, indicating a potential shift in market sentiment.

Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, noted in a recent post on X that Bitcoin sellers have “dried up.” This is evident in the sharp drop in the average daily BTC inflows to major crypto exchanges, which has decreased from 81,000 to 29,000 BTC per day. This is the lowest level since May 2023, when BTC was trading at less than $30,000.

Adler believes that this decrease in sell-side pressure is a positive sign for the market, as it shows that buyers are comfortable with the current price levels. He predicts that April and May could be a consolidation period before the next major price movement.

The recent data also suggests a more neutral stance from traders, with the Coinbase Premium, a proxy for US exchange demand, hovering around neutral levels. This is despite the lack of a significant price rebound. However, short-term analysis shows a potential uptick in inflows this week, with the exception of global exchange Binance.

According to CryptoQuant contributor Joao Wedson, founder and CEO of data analysis platform Alphractal, short-term holders are sending significantly less BTC to Binance compared to other exchanges. This could indicate a lower selling pressure on Binance and a more neutral stance from traders.

Overall, the decrease in exchange inflows and the neutral stance from traders suggest a potential shift in market sentiment. This could be a positive sign for Bitcoin’s future price movements, as it indicates a potential supply shortage in the market. However, as with any investment, it is important to conduct your own research and make informed decisions.