Currently, data from the Bitcoin market is providing several notable signals related to the OTC (Over-The-Counter) balance – where large investors trade. Here are the core contents to know:

1️⃣ Accumulation (Bullish)

• When the OTC balance increases (green line going up) and the pink area (30-day change) is in the positive zone, this is a sign that large institutions are accumulating Bitcoin.

• For example: Late 2023 - early 2024, the OTC balance increases significantly, and Bitcoin prices also rise accordingly.

Trading signal: This is a suitable time to buy in, as the supply of Bitcoin is decreasing in the public market.

2️⃣ Distribution (Bearish)

• When the OTC balance declines (green line going down) and the pink area turns negative, this signals that large institutions are selling off or transferring Bitcoin to exchanges for sale.

• For example: From mid to late 2024, the OTC balance drops sharply, creating downward pressure, leading to a crash in Bitcoin prices.

Trading signal: Avoid buying in or consider taking profits if you are holding Bitcoin.

3️⃣ Short-term reversal signals

• If the pink area shifts from negative to positive → Bitcoin may be preparing to recover.

• If it shifts from positive to negative → The market may be about to adjust downwards.

Action: Closely monitor data, especially at clear turning points, to seize opportunities to enter or exit the market.

4️⃣ Sell-off warning

• When the OTC balance drops suddenly and sharply, a major sell-off is likely to occur, causing strong downward pressure.

• Currently (end of 2024), the OTC balance is at a concerning low level, signaling a poor market sentiment.

Action: Invest cautiously, reduce risk, and monitor additional signals from the market.

Conclusion:

• Monitoring the OTC balance is an important tool to understand the behavior of large investors.

• In the short term, the market seems to be under downward pressure, but accumulation signals may present an opportunity to prepare for the next bull cycle.

What do you think about the current Bitcoin trend? Is this a good time to invest or should we wait longer? Share your thoughts!