Bitcoin’s price movements in recent months indicate that seller fatigue is emerging in the market. Bitcoin, which dropped to $60,000 on February 5, has consolidated in a narrow band for more than two months since then, while the price has gradually begun to approach the $70,000 level.
Selling Pressure Reduces
Data shared by CheckonChain, one of the on-chain analysis platforms, reveals that the selling pressure on Bitcoin has weakened in recent weeks. Currently, daily losses are around 400 million dollars. Although this figure is still high compared to previous years, a decline in losses has been observed in recent weeks.
In the past, losses in the Bitcoin market showed short-term sharp increases on November 21 and February 5, reaching $ 2 billion per day, reaching the highest levels in recent years. This intense pressure was not observed even in the bear market of 2022.
CheckonChain stated that the aggressive movements of the sellers in the spot market began to give way to the pressure of the buyer side, and both realized profits and losses began to trend downward.
Increase in Profit Rates
Data provided by Glassnode, another market analysis company, also supports this picture. Based on the moving average of the last seven days, the daily realized profit is around $300 million, one of the lowest levels in the last twelve months.
Glassnode notes that investors who bought Bitcoin at the $ 60,000 level have now started to make a profit, albeit limited, and therefore profit realization is seen in some positions. The realized profit-loss ratio was measured as 1.4, and this level indicates the highest level since January.
CheckonChain states that the weight on the sell side in spot markets is gradually decreasing, while the movement of coins carried in both profit and loss is decreasing.
This ratio shows whether coins in circulation change hands for profit or loss. Latest data shows that the number of coins operating for profit stands out compared to losses.
Such slowdown and profit realization observed in the markets from time to time indicate that the sales pressure may temporarily decrease.
All these indicators are interpreted as indicating that Bitcoin has entered a new period of seller fatigue and the selling appetite in the market is starting to lag behind.
