Journalist
Posted:
- BTC taker sales volume has risen to its highest level since the start of the year.
- Open interest on futures of the currency has fallen by 10% in recent days.
Bitcoins [BTC] Taker selling volume has surpassed taker buying volume for the first time in 2023, CryptoQuant analyst Woo Minkyu found in a new report.
Source: CryptoQuant
BTC taker sales volume tracks the total amount of the coin sold on exchanges by traders who immediately execute their orders at the current market price. Whenever this measure rises, it indicates increasing selling pressure in the asset market.
According to Minkyu, there has been an increase in the asset holder’s sales volume “indicates strong selling pressure, meaning investors are keen to sell their assets at current prices, with more sellers than buyers in the market.”
Commenting on the significance of this, Minkyu noted:
“The fact that Taker selling volume is higher than buying volume suggests that selling pressure in the market is greater than buying pressure, which could lead to a short-term price decline. as investors may want to avoid risk or liquidate their holdings in a market characterized by high uncertainty.”
Take note, dear BTC holder
A review of BTC stock market activity confirmed that bearish sentiments were gradually taking over the market. Since December 10, the supply of the coin on the exchanges has increased by 2%.
At the time of writing, there were 1.09 million BTC held on cryptocurrency exchanges.
Source: Santiment
It is important to note that a continued increase in BTC supply on exchanges could lead to a further decline in the coin’s price as supply begins to exceed demand.
The spot market has increasingly discouraged daily traders from accumulating any more BTC. At the time of writing, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were trending down at 58.77 and 56.17, respectively.
Although the values were above the midlines, the downward movement of these indicators indicated a steady decline in demand for BTC as coin distribution intensified.
Investors’ decision to watch the market from the sidelines may be due to the increase in price volatility in recent days.
Measurements of the coin’s Bollinger Bands showed that the gap between the indicator’s upper and lower bands has gradually widened in recent days. A gradual widening of this range generally indicates an increase in market volatility.
Source: BTC/USD on TradingView
Read Bitcoin’s [BTC] Price forecast 2023-24
Moreover, open interest in the coin futures market has declined in recent days. According to data from Mint glassthis has fallen by 10% since December 11.
A drop in an asset’s open interest, with a corresponding drop in price, indicates traders are exiting their positions without opening new ones. This is known to put downward pressure on the price of an asset.