As BitcoinThe largest cryptocurrency asset continues to show a bearish movement today, falling from approximately $65,000 to $62,700, sellers seem to have re-entered the market, raising alarms in the sector about a possible downward pressure on the value of BTC. This recent development comes on the heels of strong price volatility, which has caused uncertainty among investors.
Bitcoin sellers have become active in the market
In recent research shared on the leading on-chain data provider platform, CryptoquantityXBTManager, a cryptocurrency trader and on-chain analyst, has aforementioned A possible return of Bitcoin sellers to the market. Recent data indicates a possible increase in selling activity following the current price fluctuations and falls, suggesting a change in investor sentiment.
According to the on-chain analyst, Bitcoin experienced a surge last week, breaking out of its previous range and going through a period of extreme volatilityHe noted that the price drop implies that Bitcoin may start a free retracement.
However, as BTC faced high volatility, several networks that had been dormant during these events began to become active again. Moreover, according to the data of the spent output age ranges from 1 week to 1 month, over 33,155 Bitcoin have been moved by short-term holders, which could result in immediate selling pressure from these holders.
If these age group movements increase, the expert has stressed the importance of extreme caution, as they can sometimes be intense. Therefore, he has urged investors to be alert to such events in the coming days.
BTC Open Interest Shows Negative Movement
The fall in prices has also caused a drop in Bitcoin Open Interest (IO) in all stock markets. The market intelligence platform, Santiment revealed that the last day there was a slight decrease of 2.2% in the price of BTC, which caused a significant decrease of around 7.5% in the total open interest on exchanges.
Related reading: Bitcoin Open Interest Plummets as BTC Surpasses $60,000
Meanwhile, There has been a small drop in overall open interest for altcoins like Ethereum (ETH) and Solana (SOL)Santiment has therefore outlined some takeaways to keep in mind as BTC open interest declines.
The first development highlighted by Santiment is a shift in investors’ focus from Bitcoin to altcoins. This is because, with ETH, SOL, and other notable altcoins showing a significant recovery since the August 5 crash, traders may be seeing more potential in these coins.
Another key takeaway is the reduced risk on BTC. According to Santiment, traders may be reducing their exposure due to uncertainty. “The lack of open interest in ETH and SOL is more due to them having less sensitivity to BTC price than usual this month,” Santiment added.
Other findings highlighted by the intelligence platform include the rotation of capital from Bitcoin to alternative currencies due to a slight drop in price and a change in market sentiment.
Featured image from Unsplash, chart from Tradingview.com
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