Bitcoin is among the assets that have shown high volatility in the current crypto bear market. Recently, the price of BTC has been hovering around the $20K level. However, the uncertainty with the leading cryptocurrency, most of its long-term holders have not shown any deviation from the token. Hence, they don’t seem to have taken a position.
Data from Crypto Quant, an on-chain analytics firm, noted some sales from BTC holders irrespective of its low price. However, the sentiment for the present BTC sell-offs lies in the expectation of more drops in Bitcoin price. This is contrary to former sales built on the notion of a price spike for the king of cryptocurrency.
Suggested Reading |Â CEL Token Price Plummets 50% As Celsius Goes Bankrupt
But the persisting crypto winter seems to be putting more pressure on long-term holders of Bitcoin. The author, Ghoddusifar of Crypto Quant, noted that most of the recent BTC sales are from one-year token holders.
Furthermore, it stated that such action within past cycles only occurred when BTC prices increased. So, the holders are possibly afraid of a future drop in Bitcoin price.
As the crypto winter is getting more intense, Bitcoin market is perceiving an increase in the activities of whales. Before now, the stronger hands seemed to overlook the growing downward trend in BTC.
However, seeing the market surpass their realized price, they must join the drawdown region. Their actions contributed to more Bitcoin long-term holders selling off their holdings.
BTC Risk Indicator Hits All-Time Low
Further analysis of Bitcoin key indicators is not heartwarming for its investment. Currently, Bitcoin reserves key risk indicator is at its all-time low. This indicator gives a measure of holders’ confidence in BTC.
The trendy pattern for the risk indicator of Bitcoin reserve has shown a steep drop within the past few months. Among several opposing factors to the stability of the largest crypto are the prevailing bear market and other macroeconomic indicators.
BTC has invariably lost about 60% of its value as of November 2021. Yet, the token’s indices on fear and greed indicate more negativity. They are pointing to a downward trend.
BTC hovers around the $20,000 mark on the daily chart | Source: TradingView.com
According to the opinion of a crypto enthusiast, Murad, the market has hit its high timeframe bottoming zone. He maintained that the risk indicator of BTC reserve at its all-time low speaks volumes about its undervalued position.
Suggested Reading | Loopring Wobbles In Last 2 Months – Can LRC Stay In The Loop?
The implication is either a broken indicator or a high timeframe bottoming zone. But the enthusiast said it is more likely to be the latter.
Featured image from Westend61, chart from TradingView.com
