Bitcoin (BTC) Sellers Have Become Active In The Market

As Bitcoin, the largest cryptocurrency asset, continues to display bearish movement today, dropping from about $65,000 to $62,700, sellers appear to have

Bitcoin price has displayed bearish movement today, dropping from about $65,000 to $62,700 at the time of writing. This development comes as sellers appear to have re-entered the market, sparking concerns about potential downward pressure on the value of BTC.

The recent decline follows a period of sharp price volatility, which has caused uncertainties among investors. As BTC surges and experiences crashes, it attracts attention and raises questions about the sustainability of its value.

According to a recent analysis shared on the leading on-chain data provider platform, CryptoQuant, one crypto trader and on-chain analyst, known as XBTManager, highlights a potential return of Bitcoin sellers in the market.

The analysis suggests that recent data indicates an increase in selling activity following current price fluctuations. As Bitcoin surges and experiences crashes, it attracts attention and raises questions about the sustainability of its value.

The recent analysis suggests that a possible shift in investor mood may be indicated by the entry of sellers, following a period of buying activity and anticipation of further price increases.

As highlighted by the on-chain analyst, Bitcoin witnessed a surge last week, emerging from its previous range and going through a period of extreme volatility.

He further notes that the price decline now implies that BTC may start a fresh pullback. However, while BTC was experiencing high volatility, several networks that had been inactive during these events started to become active once again.

Moreover, based on data from the age ranges for 1w-1m spent output, over 33,155 BTC have been moved by short-term holders, which could result in immediate selling pressure from these holders.

The expert notes that if such age band movements are to be observed, extra caution is advised as they can sometimes become intense. He urges investors to look out for such developments in the upcoming days.

Bitcoin Price Open Interest Sees Negative Movement

The price decline has also resulted in a drop in Bitcoin’s Open Interest (OI) across all exchanges. Leading market intelligence platform, Santiment revealed that on the last day, there was a slight decrease of 2.2% in the price of BTC, which led to a significant decline of about 7.5% in the total open interest on exchanges.

Related Reading: Bitcoin Open Interest Plunges As BTC Crosses $60,000

Meanwhile, there has been little drop in overall open interest for altcoins like Ethereum (ETH) and Solana (SOL). Thus, Santiment has pointed out a few takeaways to watch out for as BTC’s open interest decreases.

The first development highlighted by Santiment is a transition of investors’ focus from Bitcoin to altcoins. This is because, with ETH, SOL, and other notable alts showing significant recovery since the meltdown on August 5, traders may be seeing more potential in these coins.

Another key takeaway is BTC’s risk reduction. According to Santiment, traders may be cutting back on their exposure because of uncertainty. “The lack of ETH and SOL open interest is more due to them having less sensitivity toward BTC’s price than usual this month,” Santiment added.

Other takeaways underlined by the intelligence platform include capital rotation from Bitcoin to altcoins due to the slight drop in price and a shift in market sentiment.

The above is the detailed content of Bitcoin (BTC) Sellers Have Become Active In The Market. For more information, please follow other related articles on the PHP Chinese website!