After seeing a 10% daily loss on September 8, Bitcoin (BTC) is on a negative path as the leading cryptocurrency fell from $ 52,000 to the $ 42,000 area.
BTC is down 8.08% in the past seven days, reaching $ 45,994 during intraday trading. Hence, this significant pullback has caused traders’ monthly returns to plummet. Cryptanalysis company Santiment explained:
“Bitcoin’s average 30-day trader returns are in the red for the first time since July, indicating a below-average buying opportunity. A return of -3% is not extreme for this period, but an encouraging sign that the euphoria has cooled. “
Before that crash, miners were selling more than 300,000 BTC, as confirmed by IntoTheBlock. The provider of on-chain metrics noticed:
“Bitcoin miners appear to have sold over 300,000 BTC in the days leading up to the recent crash. This does not necessarily mean that the miners caused the crash, but it does underscore the cautious attitude of miners as their stocks hit a new all-time low. “
On the flip side, the perpetual funding rate for Bitcoin futures turned negative, showing a tendency to short sell the leading cryptocurrency as over-indebted long positions were flushed out of the market.
Can we expect a bullish impulse?
To to market analyst Will Clemente:
“Another bullish impulse from BTC moving towards long-term investors and coins from the stock market.”
Glassnode echoed those sentiments by acknowledging that Bitcoin balance had hit a 3-year low on the exchanges.
On-Chain Data Provider Dilute Proof believes that the recent slump was a technical correction aimed at eliminating excessive leverage in the BTC market as the illiquid supply did not move, coins left the exchanges and experienced holders did not sell.
Cryptocurrencies Leaving stock exchanges and being held by long-term investors are optimistic because it implies a culture of holding.
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