Bitcoin Sell-Off Risk at All-Time Low, Brace for a Major Move

Bitcoin Sell-Off Risk at All-Time Low, Brace for a Major Move

The Bitcoin sell-side risk ratio has hit all-time lows, indicating a potential big move for the cryptocurrency, according to on-chain data analyzed by Glassnode.

On-chain data shows the Bitcoin (BTC) sell-side danger ratio has approached all-time bottom Line recently, a sign that a big move may be coming for the coin.

Bitcoin (BTC) Sell-Side Danger Ratio Has Observed A Plunge Recently

As already  stated out by the lead on-chain analyst at Glassnode in a Tweet, Bitcoin sellers may have become exhausted recently. The “sell-side danger ratio” is an indicator that measures the ratio betwixt the sum of all profits and losses being discovered in the Bitcoin (BTC) market and the discovered cap.

The “ discovered cap” here refers to the capitalization model for Bitcoin (BTC) that calculates a sort of “true” value for the digital currency by assuming that each coin in the supply is not worth the same as the present spot price, but the price at which it was last moved.

Wall Street Memes Hold Strong among YouTubers Despite Crypto Crash

As the profits and losses being harvested in the market are nothing but a measure of the selling pressure in the market, this indicator tells us how the selling pressure (or the sell-side risk) looks like relative to the value of the digital currency (the discovered cap).

And once the value of this indicator is high, it means the investors are taking part  in a high amount of profit/loss realization at this time. Such a market is usually high danger, as the price tends to be more volatile during periods with these values.

On the other hand, low values imply the holders are reluctant to sell as of now. These conditions traditionally occur when the market has calmed down and accumulation tends to take place in such periods.

Bitcoin and Crypto: Brace for an Ugly Future, Warns Bloomberg Analyst

Now, here is a chart that shows the tendency in the Bitcoin (BTC) sell-side danger ratio over the history of the cryptocurrency:

As shown in the over graph, the Bitcoin (BTC) sell-side danger ratio has seen a sharp plunge recently, a sign that there is little profit or loss realization going in the market right now.

The indicator is now below the “low value realization” line that the analytics company has defined (colored in red in the chart). Historically, whenever the metric has plunged into this zone, the market has built up towards a sizeable move in the price.

Since such low values of the indicator imply the lack of sellers in the market, the common expectation could be that this can be a positive  tendency sign. Nonetheless, as is visible from the graph, this hasn’t necessarily been the case.

Binance Boosts Bitcoin with New Support Feature

Both positive  tendency and bearish price action has took place following the formation of this pattern. Just back in March of in the year, the indicator had shown this tendency, but the digital currency had followed up with a sharp correction.

Breaks into the high value realization zone (that is, the condition where there is a large amount of selling going on), though, have traditionally always been bearish for Bitcoin.

As the indicator has once more dipped into the low value realization area, it’s possible that a large move in the price may follow soon. Despite the fact that it’s uncertain which direction exactly this volatility can potentially go.

Bitcoin Price

At the time of publication, Bitcoin (BTC) is trading around $26,100, down 2 percent in the last week.

History Shows MAJOR Warning for Bitcoin & SP500: PAINFUL Move Ahead for Investors

Bitcoin Price Chart


Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Follow us

Latest Crypto News