These Indicators Suggest Selling Pressure From BTC Investors May Be Waning: Bitfinex

These Indicators Suggest Selling Pressure From BTC Investors May Be Waning: Bitfinex



A bitcoin (BTC) price recovery may happen sooner than expected because selling pressure from market participants may be slowing down.

The latest weekly report from the crypto exchange Bitfinex revealed that some on-chain indicators suggest that selling pressure from short-term holders may be waning.

Bitcoin Selling Pressure May Be Waning

Since BTC hit its all-time high in March, the asset’s trajectory has remained bearish, plunging to a new local low of $56,500. One indicator that the bears are currently in charge is the spike in the Exchange Whale Ratio, which reveals that whales have been making large deposits in crypto exchanges, possibly to sell and realize profits.

Once the ratio stabilizes, it is a sign that long-term holders and whales have finished distributing their supply for the time being, preventing any further corrections.

Binance

Although whales are major players, short-term holders often trigger significant market responses. The Realized Loss metric shows that this cohort of investors currently dominates selling pressure, which is coming mostly from BTC held for one week to one month. Bitcoin’s spot price usually reacts to changes in the one-week-to-one-month cost basis.

One of the metrics that suggests selling pressure from short-term holders may be waning is the Market Value to Realized Value (MVRV) ratio for one-week to one-month holders. This indicator has dipped to the 0.9 to 1 range often seen during bull market corrections. Bitfinex said there are indications of a local bottom formation.

In addition, the short-term holder MVRV ratio is at 0.96, a level that often precedes a market recovery. This suggests that short-term holders could be nearing exhaustion in their selling.

BTC May Head North Soon

Another metric suggesting a potential BTC price recovery is the Bitcoin Fundamental Index (BFI), which evaluates several aspects of the network’s health, including wallet activity and transaction volume. The index is currently at an inflection point, suggesting that BTC may move northwards soon.

“The current position of the index indicates that selling pressure is waning, while network growth has surpassed levels observed at previously identified market bottoms. This potential for positive movement hinges largely on liquidity expectations, which makes future decisions of the FOMC meeting crucial,” Bitfinex said.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

CryptoKorner
Binance
CryptoKorner
These Indicators Suggest Selling Pressure From BTC Investors May Be Waning: Bitfinex
Binance
Ledger
Bitcoin at $103K hurtles MARA stack toward $5B, holdings triple
Bitcoin Blasts Past $100K as Trump Hints at Global Trade Deals
New Bitcoin Whales Now Hold Majority of BTC Capital
Wall Street Chooses Bitcoin Over Gold as IBIT Flips GLD in YTD Flows
Bitcoin price
Binance founder CZ says Bitcoin could hit $500K–$1M this cycle
bitcoin
ethereum
bnb
xrp
cardano
solana
dogecoin
polkadot
shiba-inu
dai
Free book
Changelly
Bulls Target $2,000 Level After Bounce From $1,780 Support
Phoenix Group Mines 350 Bitcoin in Q1, Bolsters North American Operations With Texas Facility
Ethereum Surges Double Digits to $2,400 Following Pectra Upgrade
Ming-Lite-Uni: An Open-Source AI Framework Designed to Unify Text and Vision through an Autoregressive Multimodal Structure
NVIDIA Unveils Nemotron-CC: A Trillion-Token Dataset for Enhanced LLM Training
Bulls Target $2,000 Level After Bounce From $1,780 Support
Phoenix Group Mines 350 Bitcoin in Q1, Bolsters North American Operations With Texas Facility
Ethereum Surges Double Digits to $2,400 Following Pectra Upgrade
Ming-Lite-Uni: An Open-Source AI Framework Designed to Unify Text and Vision through an Autoregressive Multimodal Structure
ar
zh-CN
nl
en
fr
de
it
pt
ru
es
en
bitcoin
ethereum
tether
xrp
bnb
solana
usd-coin
dogecoin
cardano
tron
bitcoin
ethereum
tether
xrp
bnb
solana
usd-coin
dogecoin
cardano
tron