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

Bitcoin (BTC) saw a significant price correction, causing panic selling among speculators and short-term holders. On December 12, short-term holders offloaded more than $2 billion in BTC, setting an 18-month selling record, according to on-chain analytics firm Glassnode.

The drop in BTC price, which at one point reached 8.1%, led to a reaction from the more speculative part of the investor base, resulting in a significant decrease in their exposure to the market.

This significant selling pressure from short-term holders is the highest since June 2022, when single-day selling passed the $2 billion mark. According to Glassnode, this trend is being observed both among entities in profit and loss.

The significance of these short-term holder movements was emphasized by James Van Straten, a research and data analyst at CryptoSlate, who noted that $2 billion was sent to exchanges, with $1.1 billion in loss for anyone who bought between December 6 and December 13, after seeing Bitcoin up 150% year-to-date.

In terms of volumes, the short-term holder’s transfers to exchanges were the largest since the start of July in BTC terms, with the December 12 tally marking the largest since the rebound above the $30,000 mark after dipping to $25,000.

Glassnode also flagged multiple on-chain indicators suggesting that short-term holders may have reached resistance, with the Mayer Multiple approaching 1.5, an area which has acted as bull market resistance during Bitcoin’s history.

There is a historic significance to this resistance level, as Glassnode explained, “Perhaps as an indicator for the severity of the 2021-22 bear market, it has been 33.5-months since this level was breached, the longest period since the 2013-16 bear.”

This article serves as an informative piece on the recent panic selling of Bitcoin based on on-chain data, highlighting the significance of short-term holder movements and the potential saturation of demand, as well as the historic significance of the current resistance level based on the Mayer Multiple indicator. As always, readers should conduct their own research before making investment or trading decisions.

Join Our Social Group For Latest News Updates

WhatsApp Group

Leave a Reply

Your email address will not be published. Required fields are marked *