Bitcoin (BTC) speculators sold in panic as BTC price corrected towards $40,000, latest on-chain data shows.
Figures from on-chain analytics firm Glassnode show that short-term holders (STHs) dumped more than $2 billion in BTC on December 12 alone.
Bitcoin short-term holders set an 18-month sales record
Bitcoin posted its biggest single-day decline of 2023 this week – at one point totaling 8.1%, data from Cointelegraph Markets Pro and TradingView confirm.
BTC/USD 1-week chart. Source: TradingView
In response, the more speculative portion of the Bitcoin investor base followed suit, reducing their exposure in what appeared to be a cold period in the market outlook.
Glassnode reveals that STHs, which are entities that hold BTC for 155 days or less, sent $1.93 billion worth of coins to exchanges on December 11, followed by another $2.08 billion -dollars the day after.
Both days mark long-term highs in terms of STH selling pressure, with both winning and losing companies following this trend.
The last time a daily sale exceeded $2 billion was in June 2022 – a response to the impending collapse of blockchain company Celsius.
In a post on December 12th
“A total of $2 billion, with a loss of $1.1 billion,” part of his comment said.
“This applies to anyone who purchased between December 6th and December 13th, most likely at retail, after Bitcoin is up 150% year-to-date.”
Bitcoin Short-Term Holder (STH) transfers to exchanges in USD. Source: Glassnode
In terms of BTC, volumes have been less large, with the December 12 tally marking the largest since early July this year. At the time, BTC/USD had just rebounded above $30,000 after falling to $25,000.
Bitcoin Short-Term Holder (STH) transfers to exchanges in BTC. Source: Glassnode
Mayer Multiple shows classic resistance looms
Furthermore, Glassnode pointed to several on-chain indicators that suggest STHs may have had enough of the bull mark for now.
Related: “Give yourself some rest and go” – Bitcoin price copies 2020 bull market fractal
Profit-taking around this month's 19-month highs near $45,000 is “significant,” researchers said, adding that “demand saturation (exhaustion) may be at play.”
“After such a strong 2023 so far, this rally in particular appears to have encountered resistance, with on-chain data suggesting STHs are a key driver,” they wrote in part of a conclusion to the company’s latest weekly newsletter, “ The Week On.” -Chain,” released on December 12th.
Among the indicators presented was the Mayer multiple, which describes the ratio of the current spot price to its 200-week moving average.
The multiple quickly rises to 1.5 – an area that, while not “overbought,” has acted as bull market resistance throughout Bitcoin’s history.
“The current value of the Mayer Multiple Indicator is 1.47, close to the ~1.5 level that often formed a resistance level in previous cycles, including the November 2021 ATH,” Glassnode explained.
“Perhaps as an indicator of the severity of the 2021-22 bear market, it has been 33.5 months since this level was broken, the longest period since the 2013-16 bear market.”
Bitcoin Mayer Multi-annotated chart (screenshot). Source: Glassnode
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