Bitcoin has failed to recover from its recent collapse. The first cryptocurrency by market capitalization fell from about $ 60,000, and at the time of writing it traded at $ 35,969 with a sideways movement at a lower time.
In the last week, BTC was rejected at $ 40,000 and $ 38,000 as sales pressure increased. In the coming weeks, the last price must be recovered and withheld in order to recover the refund.
The bears seem to be in control, but analyst William Clemente believes sellers are facing exhaustion. Many new investors are selling at a loss, according to Glassnode’s net realized profit / loss for the 7-day chart. Clemente said, “This process seems almost over.”
The adjusted adjusted earnings ratio (SPOR), an indicator used to calculate the profit ratio for coins traded over a given period, appears to have hit a local bottom in the weekly chart. Clemente said the current recent SPOR metric is the “deepest” since March 2020, when the price fell from $ 10,000 to $ 30,000.
Will bitcoin make a move in the short term?
As Clemente pointed out, new investors selling their coins create enough pressure to compensate for any pressure on the purchase imposed by long-term holders. A change in this dynamic may take shape over the past week.
Long-term holders can offset the pressure on sales. As can be seen in the chart below, when the amount of BTC’s supply held by long-term holders shifts from sale to purchase, the price of BTC benefits.
Additional data provided by the analyst confirmed the idea that a change in the price action of BTC can be expected. The subject-adjusted cap realized, an indicator used to measure the realized value of the total BTC supply, is moving down at a slow pace. Clemente said:
The downward trend shows that coins last moved at higher prices are moving now (making losses). This also suggests that the process of selling weak hands is a plateau.
The analyst concluded that bitcoin could remain in its current price action for some time and advised investors to remain patient. Owners’ long-term purchases began to outpace sellers, but the accumulation process took time.
Merchant Josh Rager has identified $ 34,640 as a key level of support in the daily chart. He added:
There is already a lot of action in this area, it is not sure if this will conduct the next test, but I prefer a breakdown here, followed by a massive pump days later.