Bitcoin: Can rising sell pressure thwart BTC price predictions

Journalist

Posted: December 16, 2023

• BTC’s taker promote quantity has risen to its highest degree for the reason that yr started.
• The coin’s futures open curiosity has declined by 10% up to now few days.

Bitcoin’s [BTC] taker promote quantity has surpassed its taker purchase quantity for the primary time in 2023, CryptoQuant analyst Woo Minkyu present in a brand new report. 

Supply: CryptoQuant

BTC’s taker promote quantity tracks the overall quantity of the coin bought on exchanges by merchants who instantly execute their orders on the present market worth. Each time this metric climbs, it hints at rising promoting stress in an asset’s market.

In response to Minkyu, an increase in an asset’s taker promote quantity “signifies a powerful promoting stress, that means that traders are eager to promote their belongings at present costs, with extra sellers current than consumers available in the market.”

Commenting on the importance of this, Minkyu famous:

“The truth that Taker Promote Quantity is increased than Purchase Quantity means that promoting stress available in the market is surpassing shopping for stress, which might result in a short-term lower in costs. as a result of traders could also be seeking to keep away from threat or liquidate their holdings in a market characterised by excessive uncertainty.”

Take heed, pricey BTC holder

An evaluation of BTC’s alternate exercise confirmed the bearish sentiments regularly taking on the market. Since tenth December, the coin’s provide on exchanges has risen by 2%. 

At press time, 1.09 million BTC have been held throughout cryptocurrency exchanges. 

Supply: Santiment

It’s key to notice {that a} sustained rise in BTC provide on exchanges can result in an extra decline within the coin’s worth as provide begins to outpace demand.

On the spot market, every day merchants have more and more stayed their arms from accumulating extra BTCs. At press time, the coin’s Relative Energy Index (RSI) and Cash Circulate Index (MFI) trended downwards at 58.77 and 56.17, respectively. 

Though with values above the middle traces, the downtrend motion of those indicators signaled a gentle decline in demand for BTC whereas coin distribution intensified

Traders’ choice to observe the market from the sidelines could also be because of the enhance in worth volatility up to now few days. 

Readings from the coin’s Bollinger Bands confirmed that the hole between the higher and decrease bands of the indicator has regularly widened up to now few days. A gradual widening of those bands usually signifies a rise in market volatility.

Supply: BTC/USD on TradingView

Learn Bitcoin’s [BTC] Worth Prediction 2023-24

Furthermore, open curiosity has declined within the coin’s futures market up to now few days. In response to information from Coinglass, this has dropped by 10% since eleventh December.

A decline in an asset’s open curiosity, with a corresponding decline in worth, means that merchants are exiting their positions with out opening new ones. This has been recognized to place downward stress on an asset’s worth.