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Problems for Bitcoin: 3 indicators point to potential sales

Bitcoiners must prepare for a low, as three of the network’s main indicators unanimously warn of potential sales.

CryptoQuant, a blockchain analysis company based in South Korea, highlighted the latest readings on its proprietary metrics, one of which studies major BTC exits from miners’ portfolios and the other over-the-counter BTC purchases by institutional investors. The third metric maintains a tab for stablecoin deposits on all cryptocurrency exchanges.

The bass trio, explained

All the indicators mentioned pointed to a low fermentation bias in the Bitcoin market. For example, CryptoQuant’s Bitcoin Miners’ Position Index hit an eight-year high on Tuesday, pointing out that more and more bitcoin producers are transferring their rewards to other portfolios – probably selling them since the BTC / exchange rate USD reached close to $ 42,000

“This is one of the reasons why I keep my downward trend”, said Ki-Young Ju, founder of CryptoQuant.

bitcoin

Bitcoin miners keep some of the largest portions of fresh BTC supplies before dispatching them to retail markets on demand. When they limit the supply of BTC against higher demands, it tends to raise the price of cryptocurrency. Likewise, increasing supply in relation to demand reduces the BTC / USD exchange rate.

And demand for Bitcoin is falling in the short term, show the other two indicators pointed out by CryptoQuant. First, Coinbase Premium, a cryptocurrency storage custody service offered by the American exchange Coinbase Pro, is generating lower Bitcoin deposits. This shows a decline in institutional demand.

Problems for Bitcoin: 3 indicators point to potential sales 22

“We can see green candles on the BTC chart, but they would not come from institutional investors, they are from native cryptocurrency firms,” ​​noted Mr. Ju. “Coinbase Premium does not seem to be enough to break the main resistance levels. With no dollar entries in sight, there are no more bull races. “

Second, the ‘All Stablecoins: All Exchange Reserves’ met its historic high on Tuesday. This points to an increase in the total amount of Bitcoin trades for dollar-indexed tokens, such as USDT, USDC, BUSD, etc.

bitcoin

Traders use stablecoins – which come with a 1: 1 dollar index – to park their crypted profits / losses without having to go through conventional banking channels every time.

Bitcoin may rise in the long term

Bitcoin bulls could still weather the bearish storm based on how 12.6% of their offer (2.3 million BTC) moved at a price above $ 30,000.

Data analysis firm Glassnode highlighted capital traffic, stating that it may have originated at the end of institutional investors. If true, this provides natural support for Bitcoin against aggressive attempts at a disadvantage below $ 30,000.

“This is substantial, given that BTC has exceeded $ 30,000 this year alone,” tweeted Glassnode. “This suggests that investors are injecting capital and, therefore, confidence in further price appreciation.”

Source: NewsBTC

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