PiCK
Bitcoin Short-Term Holders Send More Loss-Making Coins to Exchanges, Sustaining Pressure on Sentiment
Summary
- Bitcoin short-term holders are continuing to send loss-making holdings to exchanges.
- The net exchange inflow balance for short-term holders turned to -18,600 BTC on a 24-hour basis, showing loss-making inflows remain dominant.
- The share of exchange inflows tied to profit-taking plunged to 16% from 75%, and Adler said selling pressure easing would require the inflow balance to turn positive and the share of profit-taking inflows to rise above 50%.
Forecast Trend Report by Period
Bitcoin short-term holders are continuing to send loss-making coins to exchanges, a sign that pressure on investor sentiment remains in place.
On-chain analyst Axel Adler Jr. wrote in a newsletter on October 27 that an analysis of recent exchange inflows of Bitcoin moved within the past six months showed loss-making transfers from short-term holders still dominate.
According to Adler, the 24-hour net exchange inflow balance for short-term holders stood at -18,600 BTC that day, reversing from +10,400 BTC a week earlier. The figure fell as low as -23,100 BTC on October 26.
A negative reading means that, among short-term holder coins moved to exchanges, more were sitting at a loss than at a profit. Exchange deposits, however, do not necessarily translate into actual selling.
Over the same period, the share of exchange inflows tied to profit-taking plunged to 16% from 75%. In other words, most coins now being transferred to exchanges are moving at a loss.
Adler wrote that the imbalance in loss-making inflows had eased somewhat from the previous day's low but remained substantial. Selling pressure can be considered to have eased only if the share of profit-taking inflows rises back above 50% and the net exchange inflow balance turns positive, he added.
