Bitcoin Trader Selling Pressure Declining, CryptoQuant Head Explains Why
20 Avril 2024 - 1:00AM
NEWSBTC
The head of research at the on-chain analytics firm CryptoQuant has
explained why selling pressure from Bitcoin traders may be
declining. Bitcoin Short-Term Holder Realized Price Has Risen To
$60,000 In a new post on X, CryptoQuant head of research Julio
Moreno has discussed why the short-term holder selling pressure may
be declining for BTC. The “short-term holders” (STHs) refer to the
Bitcoin investors who have been holding onto their coins since less
than 155 days ago. Related Reading: Bitcoin Miners Always Sell Into
Halvings, Is This Time Any Different? The STHs include the
“traders” of the market who make many moves within short periods
and don’t tend to HODL their coins. This group can be quite
reactive to market movements, easily panic selling whenever a crash
or rally takes place. Generally, investors in profits are more
likely to sell their coins, so one way to gauge whether the STHs
would be likely to take part in a selloff is through their
profit/loss margin. Here, Moreno has cited the profit/loss margin
of this cohort based on its realized price. The realized price of
the group appears to have been going up in recent weeks | Source:
@jjcmoreno on X The STH realized price (highlighted in pink) here
refers to the average cost basis or acquisition price of the
investors part of this cohort calculated using blockchain
transaction history. When the spot value of the cryptocurrency is
above this level, it means that these holders as a whole are
sitting on some net profits right now. On the other hand, the price
being below the metric implies the dominance of losses. From the
above chart, it’s visible that Bitcoin has been above the STH
realized price for the last few months, meaning that these traders
have been enjoying profits. This is typical during bull markets as
the price keeps pushing up, letting these investors make profits.
While STHs tend to stay in the green in these periods, tops do
become probable to take place if these profits get extreme. As is
apparent in the graph, the profit/loss margin spiked to significant
levels just as BTC set its latest all-time high, which continues to
be the top thus far. Related Reading: Chainlink (LINK) Forms
Bullish Pattern That Led To 50% Rally On Average Recently, as
Bitcoin has consolidated between the $60,000 to $70,000 range, the
STH realized price has rapidly risen, now attaining a value of
around $60,000. This occurs because as STHs have traded in this
range, their acquisition prices have been repriced at these higher
levels, thus pushing up the average. BTC has been quite close to
this level recently so that the STHs wouldn’t be holding that much
profit now. “Bitcoin selling pressure from traders may be declining
as unrealized profit margins are basically zero now,” notes the
CryptoQuant head. BTC Price Bitcoin has continued to show action
contained within its recent range as its price is still trading
around $65,200. Looks like the price of the asset has rebounded in
the past day | Source: BTCUSD on TradingView Featured image from
Kanchanara on Unsplash.com, CryptoQuant.com, chart from
TradingView.com
Mina (COIN:MINAUSD)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Mina (COIN:MINAUSD)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024