Bitrabo Editorial
Bitcoin, the primary cryptocurrency, is witnessing a bearish trend with a drop in value from $65,000 to $62,700. The re-entry of sellers into the market is causing concerns about potential downward pressure on BTC’s price amid heightened price volatility, leading to uncertainties among investors.
Increased Activity of Bitcoin Sellers
According to recent research by XBTManager, shared on CryptoQuant, there is a noted resurgence of Bitcoin sellers in the market. The data suggests a rise in selling activity triggered by recent price fluctuations and crashes, signaling a shift in investor sentiment.
The analyst highlighted a surge in Bitcoin last week, moving out of its previous range and experiencing significant volatility. The decline in price indicates a possible free pullback for BTC. Additionally, previously inactive networks have become active again during these events, with over 33,155 BTC moved by short-term holders, potentially leading to immediate selling pressure.
As movements in age bands increase, caution is advised by the expert due to the potential intensity of these activities. Investors are urged to closely monitor these developments in the coming days.
Negative Movement in BTC Open Interest
The price decrease has also impacted Bitcoin’s Open Interest (OI) across exchanges. Santiment, a market intelligence platform, disclosed a 2.2% drop in BTC price, resulting in a significant 7.5% decline in total open interest on exchanges.
While there is a minor decrease in open interest for altcoins like Ethereum (ETH) and Solana (SOL), investors seem to be shifting focus from Bitcoin to these alternative coins, as they exhibit notable recoveries post the August 5 meltdown.
The reduced sensitivity of ETH and SOL towards Bitcoin’s price this month has led traders to pare down their exposure to BTC due to uncertainties. Capital rotation from Bitcoin to altcoins, along with changes in market sentiment, are also noted by Santiment as key takeaways from the decreasing open interest in BTC.