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Bitcoin Long Term Holders: Key Data Shows Confidence At Its Lowest

Manoj Nair




According to Crypto Quant author ghoddusifar, those holding Bitcoin for a year are selling,

Bitcoin continues to change hands below $20K at $19,758.02 when reports last came in down 0.46% in the last 24 hours. The past month has seen BTC showing a very high state of volatility. The ‘numero un crypto coin has fluctuated seven times, going up and down around $20,000, and it seems that long-term holders have not decided to enter a position yet. There is an undercurrent of fear in crypto investors’ minds that BTC can see a further price correction.

Bitcoin Holders On Selling Fling

Data obtained from On-Chain analyst Crypto Quant point out that those Bitcoin holders are briskly divesting their BTC holdings despite a downward price trend. When the price was surging, there was an increase in sale orders. However, this time round, the holder is quickly divesting their holdings of BTC since they are anticipating a further price correction of the number one coin.

According to Crypto Quant author ghoddusifar, those holding Bitcoin for a year are selling,

“Despite the price reduction, 1-year holders are selling. This happens in the past cycles only when the price increases. It can indicate the fear of the holders of the market situation and the possibility of further price reduction.”

In totality, it seems that long-term Bitcoin holders are under increasing pressure to divest their holdings.

All-Time Low Bitcoin Reserves Risk Indicators

A key risk indicator pertaining to Bitcoin reserves which is a benchmark of holders’ confidence, is at an all-time low. Most crypto experts believe that the crypto sector is in a phase of bottoming out.

Well-known crypto enthusiast Murad said that the Bitcoin Risk Indicator is a benchmark for the confidence of long-term holders, and the indicator is flashing red and is at its lowest ebb. Murad added either the hand is erroneous or the market is currently at a high time frame bottoming zone. He gave his vote for the latter.