Glassnode Analyst Points to Reduced Selling Pressure on BTC
The chief on-chain analyst from Glassnode recently revealed an interesting trend concerning Bitcoin (BTC). He noted that the sell-side risk ratio for BTC is nearing its all-time low. This means that current investors, regardless of whether their holdings are in profit or at a loss, seem hesitant to sell within the prevailing price range.
Implications of Low Sell-Side Risk Ratio: A Potential Bull Run?
Typically, when the sell-side risk ratio plummets, it indicates the exhaustion of sellers on both sides of the transaction. The analyst interpreted this as a potential precursor to significant price movements shortly. This could be a positive short-term signal for the crypto market, which has witnessed a market capitalization decrease of 2.04% over the last day, per CoinMarketCap data. The overall market cap now stands at $1.12 trillion.
BTC's Recent Performance: An Overview
At the time of writing, Bitcoin is trading at $26,750.13, reflecting a 2.36% decline over the past day. This recent downturn also flipped its weekly performance to a negative, registering a 0.77% drop over the past week. After reaching a daily high of $27,386.99, BTC's price dipped below the crucial $27K level, marking a 24-hour low at $26,694.43. Currently, the cryptocurrency is teetering dangerously close to its daily low.
Technical Indicators Suggest Potential Price Movements
The daily chart's technical indicators for BTC look bearish at this point. The 9-day EMA line is trending below the 20-day EMA line, while the daily RSI line threatens to cross bearishly beneath the daily RSI SMA line. If this happens in 48 hours, BTC's price could drop to $25,450.
Conversely, if the daily RSI line remains above the daily RSI SMA line for the next 48 hours, BTC's price could break above the 9-day and 20-day EMA lines. In that case, Bitcoin could reach $28,200 in the next few days.