Analyst: The current bitcoin selling pressure in the market is mainly driven by profitable holders, and if the price continues to rise, there will still be selling pressure from loss-making holders.
BlockBeats News, January 17, Crypto Quant analyst Axel published an article stating that according to the "Bitcoin Short-Term Holder 24-Hour Profit and Loss Transfer to CEX Total Volume Chart" data, in the past 24 hours, about 35,400 profitable bitcoins have flowed into CEX, marking the highest figure in nearly two months. Meanwhile, the outflow of loss-making coins was extremely low, at only about 4,600. The profit/loss outflow ratio is approximately 7.5:1. Profit-taking behavior is clearly dominant, with very little panic selling.
Axel explained that a high amount of profit-taking occurring when the loss rate is extremely low is a logical market behavior. Investors who bought in the $85,000–$92,000 range are using the opportunity of prices approaching their cost basis to lock in profits. This flow structure indicates that profit-taking is the main driver of market selling pressure, which is a completely different type of pressure compared to panic selling from loss positions. Once the profit/loss ratio reverses (i.e., selling driven by losses begins to dominate), a bearish scenario will intensify, although this is not a necessary condition.
Various charts depict a coherent picture: the loss rate has narrowed to its lowest level, and it is precisely in this range that profit-taking activity has become active. The price is testing the cost benchmark area while facing high supply pressure from profitable positions.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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