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Despite the fact that bitcoin continues to trade below $ 20,000, long-term holders do not seem to be interested in opening a position yet. Over the past month, Bitcoin has demonstrated high volatility Swinging back and forth about $20,000 as many as seven times. In addition, rumors are widespread in the crypto community about the possibility of a further decline in the price of bitcoin.
Bitcoin holders on sales
Blockchain data from Crypto Quant suggests that bitcoin holders are actually selling BTC despite the downward trend in price. Unlike a spike in sales orders, when the price jumps, this time it seems like the holders are waiting. further price drop . According to Crypto Quant author Goddusifar, those who hold bitcoins for one year sell.
“Despite the price reduction, holders are sold for 1 year. This only happens in past cycles when the price goes up. This may indicate the fears of market holders and the possibility of further price reductions.”
Overall, there seems to be increasing pressure from merchants on long-term bitcoin holders.
All-time low-risk indicators
Meanwhile, a key risk indicator on bitcoin reserves, which measures holders’ confidence, is at an all-time low. Murad, a crypto enthusiast, believes that the market is currently in lower zone of high time frames . He said on Twitter,
“Bitcoin’s reserve risk indicator is at an all-time low. It measures the level of confidence of long-term holders in relation to the current price. The indicator is grossly undervalued. Either this indicator is broken, or we are in the lower zone of the higher timeframe. I’m leaning toward the latter.”
In the past few months, Bitcoin’s reserve risk indicator has been on a trajectory of sharp decline. According to CoinMarketCap, at the time of writing, bitcoin is trading at $19,510, up just 0.13% in the last 24 hours. On the other hand, the Bitcoin Fear and Greed Index continues to register at an extremely low level.
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