Bitcoin (BTC) may have returned to the control of sellers who appeared determined to drive the price below £17,200, concluding its week-long stay in the green. Since BTC surpassed £18,000 on October 30, according to one analyst, market sell orders have prevailed over buying power.
The analyst observed that the buy orders were a long way from being in sync. This raised concerns about the leading cryptocurrency’s capacity to maintain its current price.
In fact, it appeared like one of the concers had already materialised. The reason for this was that according to data from CoinMarketCap, BTC had lost 1.70% of its value over the past 24 hours. BTC’s price at the time of writing was £17,600.
The short-term Spent Outfit Profit Ratio (SOPR) value steadily increased over the value of 1. This suggested recent profits for short-term investors. Additionally, this showed that they were selling off their asset. Therefore, investors who are still holding would run the risk of losing their recent gains if this behaviour takes hold on the market.
Long-term holders may not be ignored, according to the analyst. Another analyst made the observation that BTC has been below levels of accumulation and redistribution for longer than 2012 and 2020.
The analyst opined that it was doubtful that BTC would avoid another market crash prior to any significant bullish run given that 138 days had already been spent below the level. Therefore, this scenario might render any bullish projections invalid.
Furthermore, it would not be surprising if long-term holders took part in the selling. At the time of writing, Glassnode reported that the BTC-adjusted Coin Days Destroyed (CDD) was at 0.1588.
There was a good chance that the amount of coins sold by these holders had steadily increased because it was higher than the levels most recently seen between 17 July and 15 October. This suggested that selling pressure was present everywhere. This could lead to BTC bears regaining market control.
Meanwhile, the 24-hour active addresses had decreased after seeing a sharp rise on October 26 and 29. At the time of writing, 841,000 addresses were listed, according to Santiment. This appeared to be a significant decline from more than 1 million on October 26. This implied that fewer buyers were interested in the asset.
The one-day circulation had also destroyed its initial rise. At the time of writing, 24,500 BTC had been circulated in the last 24 hours. It was clear from these metrics that bulls were at a great disadvantage against increasingly powerful bears.