Ease in Bitcoin Selling Pressure: A Fresh Perspective on Market Dynamics
The revised article delves into the possibility of Bitcoin’s selling pressure witnessing a downturn, a theory put forth by CryptoQuant’s lead researcher, Julio Moreno. He credits this shift to the activities of ‘short-term holders’ (STHs), Bitcoin investors who haven’t held onto their coins for more than 155 days. Characteristically known as market traders, STHs are recognized for their frequent trading habits and responsive attitude towards market volatility. They tend to liquidate their holdings when profitable, and their profit-loss ratio provides insight into their potential involvement in a selloff. Moreno’s study indicates that the ‘STH realized price’, which is the average purchase cost of STHs derived from blockchainThink of blockchain as a digital ledger that records transactions in a transparent, tamper-proof way. It's a chain of transaction blocks linked chronologically. transaction records, has escalated to approximately $60,000. When the spot value of Bitcoin surpasses the STH realized price, these holders are collectively profiting. Lately, as Bitcoin’s price has oscillated between $60,000 and $70,000, the STH realized price has climbed, suggesting that the unrealized profits of the STHs have now effectively leveled out. As a result, the Bitcoin selling pressure exerted by traders is diminishing, thereby contributing to a more stable market. This decrease in Bitcoin Selling Pressure presents a new insight into the trends shaping the cryptocurrency market.
Not financial advice. Always be safe and secure when dealing with cryptocurrency. Never send anyone your private key. Always Do Your Own Research..DYOR..DYOR..DYOR!
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