Bitcoin sellers are ‘exhausted’ according to on-chain data

It is now clear to everyone that the bear market is in full swing. And that’s exactly the point; everyone is convinced that we will continue to descend. Glassnode notes that sellers are totally exhausted.

Investors no longer sell BTC

That writes the on-chain analyst on Twitter. It has its own indicator that measures where sellers stop selling, which can indicate that we have reached the bottom of the market. The Seller Exhaustion Constant in fact, it is at the lowest point since November of 2018. The indicator reaches such levels as investors have sold a lot while bitcoin’s volatility measured over 30 days is low.

In the past, there have been seven times when the indicator has been at such a low level, and six out of seven times it resulted in rising prices. It only led to a drop once, which was in November of 2018. Then we saw a final drop of 50% – so the indicator is not completely watertight.

The founders of Glassnode to emphasize that the volatility and demand for BTC is very low at the moment, and that the bitcoin price has been going sideways for some time. That means a lot of volatility is presumably just around the corner. As Glassnode itself emphasizes, this does not necessarily mean that the price will rise, it can also fall. Volatility works both ways.

Technical analysis also important

We previously wrote in a price analysis that bitcoin could see a small increase in the coming period, but also that the price could fall further afterwards. After a rise, the price is likely to face a lot of resistance. Often the price tends to fall rather than continue to rise. All in all, we can conclude that the chance of volatile prices appears to be considerable.

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