Bitcoin ‘sodlers’ dump $4B in two days as BTC sales hit 18-month high

12:32 pm
December 13, 2023
Featured image for “Bitcoin ‘sodlers’ dump $4B in two days as BTC sales hit 18-month high”

**Bitcoin ‘sodlers’ dump $4B in two days as BTC sales hit 18-month high**

*Summary:*
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.

*FAQ:*

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.


Share:

More in this category ...

11:58 am February 23, 2024

730K Investors Exit Despite Record $7B Inflows

Featured image for “730K Investors Exit Despite Record $7B Inflows”
10:49 am February 23, 2024

Tokenized Securities: Understanding the Impact on Traditional Financial Markets

7:08 am February 23, 2024

Enhance Your Technical Team’s Skills with Practical Technology Training

3:19 am February 23, 2024

Blockchain 101: An Essential Guide for Artists and Creators on Copyright Protection

3:05 am February 23, 2024

Binance Labs invests in EigenLayer restaking protocol Renzo

12:01 am February 23, 2024

Is Bitcoin’s Bullish Streak Sustainable?

Featured image for “Is Bitcoin’s Bullish Streak Sustainable?”
7:53 pm February 22, 2024

Paris Saint-Germain (PSG) Becomes First Football Club to Officially Validate a Blockchain

7:46 pm February 22, 2024

Innovations in Music Distribution: Understanding Decentralized Streaming Protocols

7:28 pm February 22, 2024

Operationalizing Ethical AI in Defense: A Holistic Approach

12:41 pm February 22, 2024

JasmyCoin rallies 295% as Bitcoin Dogs take the crypto stage by storm

12:14 pm February 22, 2024

The Future of Diamond Trading: Disrupting Traditional Channels with Blockchain

12:03 pm February 22, 2024

Apecoin Climbs To 6-Month High Amidst Whales’ Strategic Moves

Featured image for “Apecoin Climbs To 6-Month High Amidst Whales’ Strategic Moves”
7:50 am February 22, 2024

Polygon and StarkWare unveil Circle STARKs to streamline Zk Proofs

5:29 am February 22, 2024

Lido adds support for 1inch as withdrawal aggregator

4:44 am February 22, 2024

Unlocking the Value of Tokenized Data in Health Research and Analytics

12:05 am February 22, 2024

Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?

Featured image for “Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?”
10:17 pm February 21, 2024

Binance Introduces Portal (PORTAL) to Launchpool for Crypto Gaming

9:15 pm February 21, 2024

Smart Contracts and Blockchain: Transforming Sustainable Supply Chains

3:03 pm February 21, 2024

Brad Garlinghouse Optimistic about Ripple’s Future, Says Ripple Will Welcome XRP ETF

1:44 pm February 21, 2024

From Trust to Security: The Case for Decentralized Identity Management Systems

12:08 pm February 21, 2024

Render Token Surges 60% In a Month, Gains Traction with Investors

Featured image for “Render Token Surges 60% In a Month, Gains Traction with Investors”
8:29 am February 21, 2024

Climate change predictions: Anticipating and adapting to a warming world

7:51 am February 21, 2024

Starknet’s STRK sees volatile market debut following airdrop

6:14 am February 21, 2024

Securing the Food Supply: How Blockchain is Combating Counterfeit Products

12:39 am February 21, 2024

Analysts say $3k “a relatively small obstacle”

12:11 am February 21, 2024

Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge

Featured image for “Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge”
10:44 pm February 20, 2024

The Potential of Tokenized Derivatives: Unlocking New Opportunities for Investors

8:40 pm February 20, 2024

How IBM is using Real User Monitoring and DNS to deliver premium Global Server Load Balancing for business-critical applications 

5:27 pm February 20, 2024

Human Institute Teams Up with Polygon Labs and Animoca Brands to Introduce ZKP-Powered Palm Recognition Technology

3:16 pm February 20, 2024

The Future of E-Commerce: Unleashing the Potential of Blockchain Technology