- Wallets holding between 1 and 100 BTCs have started selling their assets.
- While sentiment remains negative, accumulation in the general market continues.
“Holders with 1-100 bitcoins (BTC) in their custody have increased coin distribution over the past few days as overall sentiment remains gloomy,” according to the pseudonymous CryptoQuant analyst CryptoOnchainfound in a new report.
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After evaluating the BTC issuance indicator for wallets containing between 1 and 100 BTCs, CryptoOnchain found that a large percentage of the leading coins have been moved or spent from these wallets over the past few days.
Source: CryptoQuant
In general, an increase in the spent spending by this cohort of BTC holders typically indicates a potential increase in selling activity by these investors. This could be due to various factors such as profit-taking, market sentiment or an assumption that the price may continue to fall.
However, it could also mean that these investors have transferred their BTC holdings to other companies in the past few days.
Analyst CryptoOnchain also noted that the largest increase in issued output over the past few days was observed in wallets containing between 10 and 100 BTCs. The analyst noted:
“The biggest increase is seen in wallets with 10 to 100 bitcoins, which are now around 28,000 after rising to around 36,170 bitcoins in the last few days.”
The decision to reduce their BTC holdings could be due to an ongoing drop in positive sentiment. According to Santiment, BTC’s weighted sentiment has been negative since June 9th. At press time, it remained below the center line, returning a negative reading of -1.048.
Hold onto your horses
While weighted sentiment remained in negative territory, an assessment of BTC’s exchange activity revealed a drop in the leading coin’s FX reserves. This metric tracks the total number of BTCs held on exchanges. When the value of this metric increases, it indicates an increase in selling pressure, while a decrease indicates increased accumulation.
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According to data from CryptoQuant, BTC’s foreign exchange reserves trended downwards between June 2nd and June 25th, only to see an increase thereafter until the end of the second quarter. Price movements during this period indicated a high degree of volatility. This could have persuaded many to abandon their trading positions and send their BTC to exchanges for sale.
However, things have normalized over the past two days as the metric has been declining since early July.
Source: CryptoQuant
While a certain cohort of BTC holders may have moved to sell, buying activity, among others, continued unabated. Looking at BTC’s movements on the price chart confirmed this.
At press time, the key momentum indicators RSI and MFI are above their neutral positions at 65.57 and 71.16 respectively. At these points, the king coin was close to being overbought.
While the coin was slowly approaching the overbought highs at press time, its price remained close to the upper band of its Bollinger Band indicator. At this level, it may face resistance leading to a pullback or consolidation phase.
Source: BTC/USDT on TradingView
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