Crypto

Bitcoin Price To Trade Flat for the Next Few Weeks, Traders Continue to Sell at a Loss!

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Bitcoin Establishing Point of Control Below $17,000

Bitcoin is constantly trading below $17,000 for a very long time as the volatility remains at its lowest, making the market participants furious and debating on the possible breakout zone and period that it may occur.

After being unable to surpass and hold above $16,900, star crypto has found a new support level at $16,800 and has strengthened it to a large extent. Ever since the FTX saga, the BTC price is respecting the resistance zone and hence assumed to establish a ‘Point of Control’ at $17,000. 

As per a well-known analyst, Trend Rider, the 100-week point of control (POC) has been framed at $16,800 where-in a huge volume is generated during a specific period. The longer the volume, the stronger could be the PoC resistance or support levels. 

“ New bottom forming 

~$16.8K is the new 100 Weekly POC for Bitcoin

In simple terms on the last 100 weeks this is the level where most volume has been traded, which is creating a potential bottom formation.

Will let you know how it evolves,”

Short-Term Traders Playout While Long-term Holders Sell at Loss

As the Bitcoin prices trade within squeezed regions, on-chain indicators show that the short-term bitcoin holders are extracting small profits, while the long-term holders continue to incur huge losses. It is quite evident in the Short-Term Holder Spent Output Profit Ratio (STH-SOPR) and Long Term Holder Spent Output Profit Ratio (LTH-SOPR).

Glassnode

The STH-SOPR compares the price sold with the price paid for Bitcoin in the past 155 days or nearly 5 months. The above chart indicates that the star crypto is sold at par with the average levels. If the levels drop, then it indicates the accomplishment of trade at loss. However, it is worth noting that the traders have not been in profit mush before the market collapsed in May 2022 due to Terra’s collapse. 

Glassnode

Besides, the LTH-SOPR has dropped heavily below the average levels, indicating the long-term holders to be at a deep loss. The SOPR levels have been bearish ever since the beginning of 2022, marking the year to be a strong bear market. 

Collectively, Bitcoin appears to be at a toss as the market participants are eagerly waiting for some volatility, regardless of the direction of the rally. Hence, the more the star crypto remains aloof from massive price actions, the less the traders may be interested to follow the BTC price rally ahead. 



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