Bitcoin Faces Sell Pressure: Insights on Price Movement and Market Trends
Glassnode reports that panic-selling among Bitcoin buyers, particularly those who purchased at its peak, is causing significant sell pressure. Currently trading at $81,930, many short-term holders are facing losses. Experts suggest a potential floor price of $70,000, with investor sentiment remaining uncertain.
Recent analysis by the on-chain analytics firm Glassnode indicates that panic-selling among Bitcoin buyers, particularly those who purchased the cryptocurrency at its all-time high of $109,000 in January, is exerting significant sell pressure. The firm warns that if this trend continues, Bitcoin’s price could drop to $70,000, marking a potential floor.
A report released on March 11 reveals that the sell-off among major holders has triggered intense loss realization, leading to a moderate capitulation event. The notable proportion of buyers has contributed to a shift in the short-term holder realized price, which has escalated approximately 47% from $62,000 in October to $91,362 at the time of publication.
Currently, Bitcoin is trading at $81,930, leaving short-term holders with an unrealized loss of about 10.6%. Glassnode noted the evident decline in demand strength, significantly impacting market sentiment and investor confidence. The firm also highlighted that short-term holders are significantly affected between the $71,300 and $91,900 range.
Market research firm 10x Research has termed the recent market activity a “textbook correction”, noting that around 70% of selling occurred from investors who acquired Bitcoin within the last three months. Analysts, including BitMEX co-founder Arthur Hayes, suggest that Bitcoin may retest the $78,000 mark, and potentially drop to $75,000 if that level fails to hold.
Past patterns suggest that a similar sell-off occurred in August, when Bitcoin fell from $68,000 to roughly $49,000 amidst economic concerns. However, Bitcoin has recently rebounded by 7.5% in the past 24 hours as U.S. markets steadied following previous steep declines.
In conclusion, current market dynamics indicate notable pressure on Bitcoin, primarily stemming from high-entry buyers engaging in panic-selling. With potential unrealized losses looming for short-term holders and signals of declining demand, experts suggest that Bitcoin might find a temporary floor near $70,000. Investors are encouraged to exercise caution and conduct thorough research due to the inherent risks associated with trading in cryptocurrencies.
Original Source: www.tradingview.com
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