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Bitcoin STHs Show Hesitation – What’s Driving the Slowdown?
A significant decline in inflows to Binance and reduced activity from short-term holders (STHs) suggest a shift in market sentiment. Short-term traders, once fueling selling pressure, have adopted a more cautious stance, potentially reducing liquidity on exchanges like Binance.
Recent data reveals that Bitcoin’s short-term holders are showing hesitation, as reflected in the sharp drop in inflows to Binance. A considerable decrease of 6,300 BTC, compared to an average of 24,700 BTC transferred to other exchanges, signals a drastic change in trading behavior. This decline indicates a reduction in selling pressure and may impact Binance’s liquidity.
In addition to the Binance data, both the Short-Term SOPR and UTXO Age Band metrics highlight reduced movement from short-term holders. These statistics suggest that Bitcoin traders are entering a more cautious, hold-focused phase, as they become increasingly hesitant to sell their digital assets.
This shift in market sentiment may lead to a temporary slowdown in cryptocurrency trading activity. The data further indicates a lack of buying momentum and weak demand at current levels, which could be driven by the overall bearish trend.
Bitcoin’s recent attempt to break above the 50-day SMA at $86,268 faced resistance and pushed the price back towards $84,211. As we write this article, the RSI is showing that the market is in a neutral to slightly bearish zone.
This data highlights the Bitcoin market’s uncertainty and increased risk aversion among traders.
Source: https://ambcrypto.com/bitcoin-sths-show-hesitation-whats-driving-the-slowdown/
