Bitcoin Market Analysis: Short-Term Holders Sell at Loss While Price Remains Steady Above $84,000
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Bitcoin (BTC) Price: Technical Indicators Show Short-Term Holders Selling at Loss While Price Holds at $84,000
The recent surge in the Bitcoin price has been met with a mix of excitement and skepticism. As the world’s largest cryptocurrency by market capitalization holds steady above $84,000, technical indicators suggest that short-term holders are selling their coins at a loss. This phenomenon could contribute to the asset’s continued upward momentum.
As the US Federal Reserve faces mounting pressure to lower interest rates amid concerns over inflationary pressures, Bitcoin has benefited from the uncertainty. The US Dollar Index (DXY) has plummeted to its lowest level in three years, and investors are seeking alternatives to preserve their purchasing power.
Political pressure on the Fed is intensifying, with calls for a rate cut despite relatively strong employment data. This tension in monetary policy direction creates uncertainty that often drives investors toward assets like Bitcoin and gold.
Bitcoin’s decoupling from traditional markets has raised eyebrows, as it diverges from the S&P 500 index, which has dropped by 5.7% this month. Meanwhile, Bitcoin has gained more than 10%. This divergence could further strengthen its narrative as a standalone asset class.
On-chain data reveals growing confidence among Bitcoin holders. The exchange netflows are standing at 52%, indicating that there is more BTC being withdrawn from exchanges than deposited – typically a signal that investors plan to hold rather than sell. Furthermore, 77% of all Bitcoin addresses may be in profit, which often enhances holder sentiment and supports price stability or further upward momentum.
Data shows that miners have demonstrated long-term commitment despite the recent halving event, with the network hashrate increasing by 8% compared to the previous month. This resilience counteracts concerns that lower mining rewards would trigger selling pressure from miners, who reportedly hold around 1.8 million BTC.
The simultaneous movement of Bitcoin and gold as safe-haven assets suggests a shift in investor sentiment. Both assets have moved in tandem, with Bitcoin maintaining its position above $80,000 and gold reaching an all-time high.
Source: https://blockonomi.com/bitcoin-btc-price-technical-indicators-show-short-term-holders-selling-at-loss-while-price-holds-at-84000/
