Bitcoin Market Shows Signs of Distribution Rather Than Confirmed Bottom

The Bitcoin market is showing signs of distribution rather than a confirmed bottom, according to CryptoOnchain's latest on-chain analysis. A 564% week-over-week surge in average miner outflows indicates that miners are selling into exchanges, which can be a sign of supply pressure. This is combined with simultaneous inflows of 18-24 month old coins to Binance, well above the 30-day benchmark.

The stablecoin liquidity picture is also running negative, meaning there is less buying power available to absorb selling pressure. A negative daily net stablecoin inflow average of $126 million on Binance indicates a structural demand shortfall that makes each incremental unit of supply more impactful on price. The combination of these signals suggests a distribution phase, where multiple holder cohorts are coordinating to reduce exposure.

However, the options market has normalized and Bitcoin has recovered above $60,000, adding a caveat to what otherwise looks like a stabilizing short-term picture. The funding rate divergence between leveraged longs building positions and the structural supply-side pressure is creating tension in the market.