The post Bitcoinย (BTC) Price Trades at a Decessive Point; Short-Term Holders May Suffer Extreme Lossย appeared 1st on Coinpedia Fintech News
Despiteย theย factย that the cryptocurrency markets are painted green, the value of the bulkย of the cryptoย 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 regardlessย 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.ย
A huge boost in short-term trading has been witnessed in recent times, inย particularย since the markets witnessed a major fallout aย yearย ago. This outlines the traderโs sentiments, which are filled with uncertainty and fear. Thisย isย 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 cryptoย token and the pace of the rally to a large extent.ย
Presently, the Bitcoinย (BTC) price seemsย to be in a decisive phase, and short-term holders mayย be the primary lens through which to view this correction. Below are severalย indicators from Glassnode that justify theย probability loss for the short-term holders.ย
- 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.ย
- The Bitcoinย (BTC) SOPR or Short-Term holder discovered Profit/Loss ratio momentum, is trading below 1, indicating loss dominance.ย
- 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, whichย canย potentially invite the worst.ย
- Lastly, BTCโs 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.ย
