Bitcoin (BTC) speculators panicked and sold as BTC price corrected to $40,000, according to the latest on-chain data.
Short-term holders (STH) offloaded more than $2 billion of BTC on December 12 alone, according to figures from on-chain analytics firm Glassnode.
Bitcoin Short-Term Holders Break 18-Month Sales Record
Bitcoin recorded its biggest one-day decline of 2023 this week, falling a total of 8.1% at one point, according to data from Cointelegraph Markets Pro and TradingView.
In response, the more speculative subsections of the Bitcoin investor base have followed suit, reducing their exposure in what appears to be a callous attitude to market prospects.
Glassnode revealed that STH, which consists of entities that hold BTC for 155 days or less, sent $1.93 billion worth of coins to the exchange on December 11 and an additional $2.08 billion the following day.
Both days marked long-term highs in terms of STH selling pressure, with both gains and losses joining the trend.
The last time daily sales exceeded $2 billion was in June 2022. This was a response to the impending collapse of blockchain company Celsius.
in post James Van Straten, research and data analyst at cryptocurrency insights firm CryptoSlate, noted the significance of this week’s STH movement on X (formerly Twitter) on December 12.
His comments stated: “$2 billion in total, $1.1 billion in losses.”
“For anyone who saw Bitcoin up 150% YTD and made retail purchases between December 6th and December 13th.”
On the BTC side, trading volumes were modest, with the December 12 tally being the highest since early July this year. At the time, BTC/USD was fresh, falling as low as $25,000 before rebounding above $30,000.
Mayer Multiple shows a classic resistance loom.
Glassnode went on to display several on-chain indicators that suggest that STH may be in a bull market for the time being.
Related: ‘Take a break’ — Bitcoin price copies 2020 bull market fractal
Gains near $45,000, a 19-month high this month, are “meaningful,” the researchers said, adding that “potential saturation of demand could be at play.”
“After such a strong 2023, this rally in particular appears to have met resistance, with on-chain data suggesting STH is the key driver,” they wrote as part of their conclusion to “The Week On,” the company’s latest weekly newsletter. .” he wrote. -Chain’, released on December 12th.
Among the key indicators is the Mayer Multiple, which describes the relationship of current spot prices relative to a 200-week moving average.
The multiplier is quickly rising to 1.5. Although this area is not “overbought,” it has served as bull market resistance throughout Bitcoin’s history.
“The current value of the Mayer Multiple indicator is 1.47, which is close to the ~1.5 level, which often forms a resistance level in previous cycles, including the ATH in November 2021,” 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 breached, the longest such period since the 2013-16 bear market.”
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