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Bitcoin [BTC] Holders looking to go long should read this first

  • Bitcoin’s average dormant period saw an increase, indicating greater selling pressure
  • Bitcoin volume and MVRV ratio continued to decline.

According to a new CryptoQuant report by triumphal marchbitcoin’s average dormant period had seen an increase. In the past, such a spike was always accompanied by the first technical recovery.

$BTC: Average Rest – Highest since February 2022

“Historical statistics show that this index often rises during the first technical recovery after a large price decline.”
by @dntwenry

Link👇https://t.co/iELvGc9Gxg

— CryptoQuant.com (@cryptoquant_com) November 24, 2022

Read Bitcoin price prediction 2022-2023

Bitcoin average dormancy rising

You can see that from the picture below BitcoinThe average dormancy of was the highest since February 2022. Average Dormancy is an on-chain indicator that calculates when a coin was last traded relative to all coins. This metric usually grows when there is high selling pressure.

Source: CryptoQuant

Another indicator that painted a cynical outlook for Bitcoin was the declining median transaction volume. As can be seen from the image below, Bitcoin’s average transaction volume has decreased significantly over the past month.

Despite this, whales continued to show interest in Bitcoin. Corresponding Data from GlassnodeAddresses with more than one coin hit an all-time high of 950,432 on November 24th.

Source: Glassnode

Although large investors have been observed accumulating Bitcoin, there have been factors that could increase selling pressure on retail investors.

Other metrics are falling

The transaction volume in profit declined over the past month as can be seen from the image below. This indicated that a lot Bitcoin Holders could not benefit after selling their shares Bitcoin.

The MVRV ratio also declined, suggesting that if most BTC holders sold at the current price, they would do so at a loss.

The daily active addresses in the BTC network have also decreased significantly in the past few days.

Source: Santiment

It wasn’t just retail investors who suffered the selling pressure, as Bitcoin miner also felt the heat.

As can be seen from the chart below, miner revenue had been declining over the past few weeks. This falling revenue could be a reason why miners are exiting their positions and giving in to selling pressure.

Miner balance sheet had hit a 10-month low of 1.8 million at the time of writing.

Source: Glassnode

That is, at the time of going to press, Bitcoin was trading at $16,540. According to them, over the past 24 hours, its price was down 0.06% and its volume was down 25.93% CoinMarketCap.

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