BITCOIN SELLER PRESSURE PUSHES 12-MONTH LOW:

ØA cryptocurrency analyst says the rise is due to “increasing seller pressure” in the United States market, reaching levels not seen since Jan 2k24.

    

Markets Updates

Ø A metric used to gauge BTC retail demand in the United States — fell to its lowest level in last year as 2k24 drew to a close, with an analyst warning it could pose a challenge to short-term price recovery. 

Low-liquidity market 

Ø BTC $95,507 demand from US retail investors. A rising value indicates more buying pressure and a negative value hints at selling pressure. 

Ø On Dec. 31, it fell to its lowest point of - 0.23. On the same day, Bitcoin briefly dropped to $ 91,489 on Dec. 31, its lowest point since Nov

Ø The last time it reached this level was in Jan 2024, around the same time spot Bitcoin exchange-traded funds (ETF’s) launched in the United States.

Ø It came close to this range again just before the US elections in late Oct,

hitting -0.20 when Bitcoin was trading around $69,165.

Ø A key macroeconomic event the Crypto industry is closely watching is  United States President-elect Donald Trump’s inauguration jan.    

Ø Some analysts believe Bitcoin’s rally will eventually continue post-inauguration after an initial stall. According to Ryan Lee,  the BTC price could be corrected by as much as 30.5% before resuming its bullish run.

Long-term holders in significant profits

Ø Meanwhile, Bitcoin long-term holders — those who have held their Bitcoin for over 155 days — are sitting on significant profits. 

Ø This could increase the risk of further sell-offs as investors may look to cash out and take profits into the new year.

Ø The long-term holder realized price is $24,298, representing approximately 290% profit margin if they were to sell at the current price of publication, $94,820.

Ø However, the average cost-basis for short-term holders — those holding Bitcoin for less than 155 days — is significantly higher.

Ø The short-term holder’s realized price stands at $86,753, reflecting a 9.29% profit if they were to sell at the current price at the time of publication.