After several days of sharp bearish pressure, Bitcoin’s price appears to be stabilizing as it recovers above $86,000. Recent on-chain data reveals that numerous investors moved to lock in profits over the past week, contributing to the leading cryptocurrency’s double-digit decline.

Major Bitcoin Transfers to Exchanges Signal Selling Pressure

Crypto analyst Ali Martinez recently highlighted on X that substantial Bitcoin volumes were deposited to centralized exchanges over the past week. Santiment data shows approximately 20,000 BTC—valued at nearly $2 billion—was transferred to exchanges during this seven-day period.

The key metric here is Exchange Inflow, which measures the volume of an asset flowing into centralized exchanges over a given timeframe. This indicator carries significant weight because selling is one of the primary services exchanges provide.

Rising exchange inflows typically signal potential asset liquidation by investors. The resulting increase in cryptocurrency supply on the open market generally creates downward price pressure, particularly when demand doesn’t rise correspondingly.

CryptoQuant’s head of research, Julio Moreno, corroborated this trend in a separate X post. According to data he shared, Bitcoin exchange inflows reached approximately 81,000 BTC on Friday, November 21—the highest level observed since mid-July.

This surge in exchange deposits helps explain Bitcoin’s Friday volatility. The flagship cryptocurrency faced substantial bearish momentum, with its price dropping to just above $80,000 heading into the weekend.

Currently, BTC trades around $86,070, marking a more than 2% increase over the past 24 hours.

CryptoQuant CEO: Bitcoin Enters Profit-Taking Phase

CryptoQuant CEO Ki Young Ju confirmed that Bitcoin has entered a profit-taking phase, evidenced by rising exchange inflows. Ju based this assessment on the PnL Index Signal, which evaluates profit and loss levels across all wallet cost bases.

Given the current PnL Index reading, Ju noted that traditional cycle theory suggests BTC is entering bear market territory. However, the CryptoQuant CEO pointed out that macro liquidity could override the profit-taking cycle—similar to what occurred in 2020.

This puts the spotlight on the Federal Open Market Committee meeting in December, especially as expectations for a US Federal Reserve interest rate cut continue to diminish.