- Bitcoin holders have started selling at a loss after a long period of making profits.
- Key technical indicators showed that the bears are in control of the market.
Bitcoins [BTC] The Adjusted Spent Output Profit Ratio (aSOPR) fell below 1 for the first time since October 2023, according to CryptoQuant facts. This indicates that investors are now selling their investments at a loss on average.
Source: CryptoQuant
BTC’s aSOPR measures the profit or loss realized when the coin is spent by its holders. An aSOPR value above 1 means that coins are sold at a profit overall. Conversely, a value below 1 indicates that investors are selling at a loss.
Recent increase in profit-taking activities
BTC’s recent price drop below $61,500 has led to a significant increase in sell-off among its holders. According to CryptoQuant data, the market has seen an increase in the supply of BTC on exchanges. The foreign exchange reserve has increased by 1% in the past seven days.
At the time of writing, there were 2.006 million BTC held on cryptocurrency exchanges. When an asset’s reserve increases in this way, it indicates an increase in selling pressure.
Miners have also divided their assets to limit losses, putting pressure on their reserves dive to the lowest level in three years. The recent decline in the price of BTC has led to a steady decline in miner revenue from fees, making coin distribution a more suitable option for network miners.
Per from Glassnode According to data, the percentage of miners’ revenue from fees has fallen 44% since March 6.
Source: Glassnode
Moreover, open interest on the currency’s futures market had fallen by 14% between March 15 and 20, according to Mint glass’ facts.
When an asset’s open interest falls in this way, it indicates a decrease in the number of contracts outstanding. This is because market participants are exiting their positions without opening new ones.
At the time of writing, BTC open interest in futures stood at $36 billion.
Do you expect more disadvantages?
A review of BTC’s price movements on a daily chart revealed that bearish sentiment has become significant in the market.
Measurements of the coin’s Moving Average Convergence Divergence (MACD) showed that the MACD line crossed below the signal line on March 15, causing the indicator to display only red bars.
The intersection often suggests that an asset’s short-term momentum is weakening relative to its longer-term momentum.
Realistic or not, here is the market cap of BTC in ETH terms
This crossover signals a shift to bearish momentum and is interpreted by traders as a signal to consider selling or taking short positions.
Also, BTC’s positive directional index (green) was below the negative index (red) at 14.70, confirming that the bears had regained control of the market.
Source: TradingView