Bitcoin is now facing the strongest spell of selling pressure in the last three years, according to a prominent on-chain analyst. The falling values on the metric underscored aggressive selling activity, as the market sell orders vastly outnumbered the market buy orders. As we know, it is market orders, not limit orders, that move prices.
While the evidence revealed rising sell pressure, the holder retention rate has been increasing in recent months. The metric tracks the percentage of addresses that maintain a Bitcoin balance across 30 consecutive days. The rising retention rate is a sign that holder confidence and long-term commitment may be rising, even though there is legitimate fear that the bull market may be over.
Overall, the structure remains dangerous for buyers, and long positions tend to unwind during price gains. This makes it hard for rallies to be sustained. It can be viewed as a warning that traders should sell the bounce and book profits.
The 7D and 30D values showed signs of overheating, though the 1D value was only 43 following the price dip to $84.4k last week.
As of now, at the time of writing this article, BTC is being trade around $87,600 and has a market capitalization of $1.749 Trillion.