This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Bitcoin experienced a significant drop in price, causing panic selling among speculators. On-chain data from Glassnode reveals that short-term holders offloaded over $2 billion worth of BTC in just one day. This selling pressure from short-term holders, who hold BTC for 155 days or less, reached a long-term high and was driven by both entities in profit and loss. The last time single-day selling surpassed the $2 billion mark was in June 2022. Analysts suggest that this selling spree may be a result of concerns about the market outlook.
The drop in price also led to profit-taking near the 19-month highs of around $45,000. Glassnode highlights the potential exhaustion of demand and the resistance faced by Bitcoin’s price rally. The Mayer Multiple, which compares the current spot price to its 200-week moving average, is approaching 1.5. Historically, this level has acted as resistance during bull markets. The present value of the Mayer Multiple is at 1.47, close to the level that formed resistance during the previous all-time high in November 2021. This suggests that the current rally may face challenges.
Overall, the recent drop in Bitcoin’s price and the selling pressure from short-term holders indicate a cautious sentiment among investors. The market is closely watching the resistance levels and the behavior of short-term holders to gauge the future direction of Bitcoin’s price.