Bitcoin Selling Pressure Declines
The fall in $Bitcoin(BTC.CC$ selling pressure can be seen in the on-chain activity of short-term holders and the balances on over-the-counter (OTC) desks.
The BTC balance on OTC desks has stabilized since late April, indicating less bitcoin supply from market participants. The balance on OTC desks began to rise by 60,000 BTC on March 10 when the asset hit an all-time high of $73,000; however, it has been flat since late last month.
Similarly, the profit margins of short-term BTC holders are currently at low or negative levels following high margins that triggered high selling pressure in early March. Since they have depleted all profits accumulated in 2024, traders are now faced with unrealized losses on the positions. Historically, this has coincided with a local bottom in prices.
The BTC balance on OTC desks has stabilized since late April, indicating less bitcoin supply from market participants. The balance on OTC desks began to rise by 60,000 BTC on March 10 when the asset hit an all-time high of $73,000; however, it has been flat since late last month.
Similarly, the profit margins of short-term BTC holders are currently at low or negative levels following high margins that triggered high selling pressure in early March. Since they have depleted all profits accumulated in 2024, traders are now faced with unrealized losses on the positions. Historically, this has coincided with a local bottom in prices.
The possibility that the market has bottomed is substantiated by miners’ low profitability. CryptoQuant analysts said Bitcoin miners are extremely underpaid at the moment, and their profitability has plummeted to levels last seen since March 2020, a few days after the COVID market crash. Historically, extremely low miner profitability has been associated with price bottoms.
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EZ_money :
not concerned about selling pressure a month ago