• Bitcoin’s Exchange Reserve has spiked, indicating that traders are cashing in on the recent surge in price to make profits.
• CryptoQuant analyst Cryptohell assessed BTC’s Short-Term Output Profit Ratio (STH-SOPR) metric to determine what short-term traders have been up to.
• According to Santiment, BTC’s weighted sentiment remains significantly bullish.
Bitcoin Exchange Reserve Spikes
Short-term holders have increasingly sold their BTC holdings in the last few days. However, bullish sentiment remains in the market. According to pseudonymous CryptoQuant analyst Cryptohell, Bitcoin’s [BTC] Exchange Reserve metric has spiked due to the king coin trading at a nine-month high, indicating that traders have been cashing in on the recent surge in price to make profits. BTC’s Exchange Reserve was 2.19 million BTCs as of this writing. This metric is a collective measure of potential coins that sit on cryptocurrency exchanges and are ready to be sold in the market. A rise indicates higher selling pressure lingers in the market, while a decline suggests traders favor accumulation.
Short-Term Traders Selling
In an uptrend, Cryptohell opined that based on the characteristics of BTC’s Exchange Reserve, „it’s likely that short-term traders are the ones sending Bitcoin to the exchanges.“ Is your portfolio green? Check the Bitcoin Profit Calculator The analyst assessed BTC’s Short-Term Output Profit Ratio (STH-SOPR) metric to determine what short-term traders have been up to. At 1.05, Cryptohell stated that this metric indicated that short-term holders had control of the market and were involved in significant coin distribution volume. Further, Cryptohell explained that this investor cohort has taken to selling their holdings due to various factors impacting the current market situation. These factors include:
1) Upcoming FOMC meeting
The Federal Open Market Committee will meet on March 22nd with potential implications for markets around world..
2) Ramadan approaching
Most Muslim traders withdraw their investments as Ramadan approaches each year as part of their faith traditions and observances
3) Reaching $30k threshold
Traders who were content with their profits planed leaving once it reaches $30K because it is a resistance level which needs consideration when predicting future prices movements .
Bullish Sentiment Lingers On Chain
While BTC short-term traders might be involved in coin distribution in anticipation of a price decline, an assessment of BTC’s on-chain performance confirmed that sentiment remained significantly bullish. Per data from Santiment, BTC’s weighted sentiment was 2.407 at press time – a positive value which confirms investors belief that asset prices will grow further .
Despite short term holders cashing out due several reasons such as FOMC meetings ,Ramadan observances and reaching $30K threshold ,the overall sentiments remain positive according ot Santiment weighted sentiments score .