Warning: Bitcoin Price at Critical Level, Short-Term Holders Brace for Huge Losses

Warning: Bitcoin Price at Critical Level, Short-Term Holders Brace for Huge Losses


Bitcoin price appears to be at a decisive point, with short-term holders potentially suffering extreme losses according to Glassnode’s indicators, as the value of most tokens trade around the same levels despite decent volume and equal participation of bulls and bears.

The post Bitcoin (BTC) Price Trades at a Decessive Point; Short-Term Holders May Suffer Extreme Loss  appeared 1st on Coinpedia Fintech News

Despite the fact that the cryptocurrency markets are painted green, the value of the bulk of the crypto tokens trades around the same levels. This may likewise indicate equal participation of the bulls and the bears as the volatility of the price falls heavily regardless of a decent volume. It is speculated that this happens at times when the bulls fail to display their strength and the bears are likewise delaying their action. 

A huge boost in short-term trading has been witnessed in recent times, in particular  since the markets witnessed a major fallout a year ago. This outlines the trader’s sentiments, which are filled with uncertainty and fear. This is why, a new tendency has been establish, with the short-term traders extracting profits on every minor spike that has hampered the value of the crypto token and the pace of the rally to a large extent. 

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Presently, the Bitcoin (BTC) price seems to be in a decisive phase, and short-term holders may be the primary lens through which to view this correction. Below are several  indicators from Glassnode that justify the probability loss for the short-term holders. 

  • The Short-Term holder discovered the price was heading back to 1. Usually, in bull markets, these levels spike up beyond 2. Hence, indicating the surging bearish influence and hence a swift recovery is necessary to justify upwards. 
Warning: Bitcoin Price at Critical Level, Short-Term Holders Brace for Huge Losses
  • The Bitcoin (BTC) SOPR or Short-Term holder discovered Profit/Loss ratio momentum, is trading below 1, indicating loss dominance. 
Warning: Bitcoin Price at Critical Level, Short-Term Holders Brace for Huge Losses
  • The short-term holder discovered profit or loss has reached equilibrium. Similar to SOPR, a healthy undercut is a positive sign of local cleansing. Furthermore, if it flips below 1, along with SOPR and MVRV, that would not be ideal, and flipping near-term sentiment would be likely, which  can potentially invite the worst. 
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Warning: Bitcoin Price at Critical Level, Short-Term Holders Brace for Huge Losses
  • Lastly, BTC’s short-term holder SOPR indicator that spots rapid changes in the market regime and tendency is incredibly responsive and returns to neutral levels. If in case, the levels further fall in the red region, it signifies the correction phase may continue. 

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