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Bitcoin began a sideways trend more than a week ago. Since then, the price has ranged between $49k and $48k. The risk that a slowing in the advance may result in investors taking profits and exiting the market looms large in this market.
In order for prices to rise constantly, investors must be bullish, which does not appear to be the situation at the moment. A portion of the Bitcoin market is selling, but how likely is it that this selling will result in market losses?
Bitcoin holders sell
This is especially true for long-term HODLers (LTH). Their behaviour has changed in the last week. Despite the fact that LTH are known for accumulating Bitcoin regardless of price, this period of correction appears to be different.
The first incidence was spotted on the Realized HODL waves, indicating that Bitcoin purchased in the last six months has been maturing. This has been happening in large numbers, as their total proportion has dropped from 62 percent to 46 percent in the last month.
The same data could also be viewed on the number of Coin Days Destroyed. The indicator computes the age of the HODLed coins before they were sold. On August 25, alone, coin days were destroyed in the amount of 30 million days.
Not only that, but the supply active in the last six months has also decreased slightly. This demonstrates that selling was implemented quite recently.
Losses at a minimum
The losses incurred as a result of the aforementioned selling were not significant. It had no effect on BTC, as profit supply continued to climb, reaching 86 percent at press time.
Furthermore, the Spent Output Profit Ratio remained in the positive zone, above 1. This suggested that HODLers aren’t willing to sell at a loss, despite a price drop in the last four days.
As a result, if the LTH wants to sell, they will wait for the price to rise again. The market as a whole is likely to prosper as a result of the same.