Bitcoin Hits Wall as Short-Term Sell Pressure Increases

Bitcoin Hits Wall as Short-Term Sell Pressure Increases

• Bitcoin has been unable to rise above $28k due to increased sell pressure from long-term holders in profit.
• Analysis reveals that transfer volumes by long-term holders in profit have been on the rise.
• Whale buying after short-term sell pressure and offloading after minor gains has been observed.

Why Bitcoin is Unable to Rise Above $28K

The Glassnode analysis reveals that transfer volumes by long term holders in profit have been on the rise. In other words, there has been an increase in sell pressure by Bitcoin holders that have been in profit for the last few months.

Short-Term Profit Taking Impact

A focus on short-term profit taking has had a negative impact on Bitcoin. This explains why it has been harder for Bitcoin to sustain its upside above the $28,000 price level.

Demography Contributing To Sell Pressure

The Glassnode data also disclosed that holders that bought BTC in the last 6 to 12 months have been contributing the most to the sell pressure. These findings reflect previous market observations, which revealed a shift from long-term profits to short-term profits.

Whale Buying After Short-Term Sell Pressure

Interestingly, some on-chain data indicated that whales have been buying despite the surge in profit-taking. The key point to note is the timing of their accumulation. Addresses with at least 1000 BTC have been buying after short-term sell pressure and offloading after minor gains.