**Bitcoin ‘sodlers’ dump $4B in two days as BTC sales hit 18-month high**
Bitcoin speculators are panic selling as the BTC price corrects towards $40,000, with short-term holders offloading over $2 billion in BTC in just one day. This has set an 18-month record for selling pressure from short-term holders, driven by a drop in the BTC price and on-chain indicators suggesting a potential saturation of demand. The Mayer Multiple, a key on-chain indicator, also indicates classic resistance may be looming.
Bitcoin (BTC) speculators are in panic mode, selling off the cryptocurrency as the price corrects towards $40,000, according to the latest on-chain data. On December 12 alone, short-term holders (STHs) unloaded more than $2 billion in BTC, as revealed by on-chain analytics firm Glassnode. This marks a significant move, setting an 18-month record for selling pressure from short-term holders.
The price of Bitcoin experienced its largest single-day drop of 2023, at one point reaching 8.1%, as confirmed by data from Cointelegraph Markets Pro and TradingView. In response to this drop, a more speculative subset of Bitcoin investors reduced their exposure, indicating a lack of confidence in the market outlook.
Glassnode’s data shows that STHs, which are entities holding BTC for 155 days or less, sent $1.93 billion worth of coins to exchanges on December 11, followed by another $2.08 billion the following day. These figures represent long-term highs in terms of STH selling pressure, with entities both in profit and loss joining the trend. The last time single-day selling surpassed the $2 billion mark was in June 2022, in response to the impending collapse of blockchain firm Celsius.
The on-chain analytics firm also noted that multiple indicators suggest STHs may have reached a saturation point in terms of demand. Profit-taking around this month’s 19-month highs near $45,000 was described as “meaningful,” with potential exhaustion of demand potentially in play. Among the indicators featured was the Mayer Multiple, which describes the relationship of the current spot price relative to its 200-week moving average. The Multiple is approaching 1.5, which has historically acted as bull market resistance during Bitcoin’s history.
In conclusion, Glassnode expressed that the present value of the Mayer Multiple indicator is at 1.47, close to the ~1.5 level, which often forms a level of resistance in prior cycles, indicating potential resistance in the current market.
Q: What is the significance of the recent Bitcoin sales by short-term holders?
A: The recent selling activity has set an 18-month record for selling pressure by short-term holders, indicating a lack of confidence in the market outlook.
Q: What on-chain indicators suggest a potential saturation of demand for Bitcoin?
A: The Mayer Multiple, which describes the relationship of the current spot price relative to its 200-week moving average, is approaching a level that has historically acted as bull market resistance during Bitcoin’s history.
Q: When was the last time single-day selling surpassed the $2 billion mark?
A: The last time this occurred was in June 2022, in response to the impending collapse of blockchain firm Celsius.