- The market anticipated a possible reduction in Bitcoin selling pressure.
- Traders remained cautious despite a drop in implied volatility.
Despite the adoption of institutional ETFs, Bitcoins [BTC] The price has been stagnant in recent weeks, causing FUD among traders and holders alike.
Chance of green?
According to an
However, he noted that the prevailing trend indicated a gradual reduction in selling pressure going forward. So, BTC could soon witness a brief respite or even a modest recovery.
????Take a look at this diagram…
It visualizes the enormous selling pressure of the past month, with hardly any green candles.
The selling pressure is currently decreasing. Is it time for a short breather or even a little recovery? pic.twitter.com/ZBfmeqJmS8
— Maartunn (@JA_Maartun) January 23, 2024
Bitcoins latest resistance levels also indicated a huge adjustment. Previously, a substantial resistance cluster was identified between $44,000 and $45,100.
However, there has been a shift in these resistance walls recently, and they had gradually moved closer to BTC’s price level.
If a reversal occurs in the future, traders should be cautious of these levels before going long.
How do Bitcoin traders behave?
In terms of trading behavior, it appeared that market sentiment had calmed down. Bitcoin’s implied volatility (IV) had declined for significant periods and stood at around 47% at the time of writing.
However, the Volatility Risk Premium (VRP) and Skew remained consistently at the average level.
For context, the VRP reflects the difference between expected and actual market volatility, providing insight into risk perceptions. Meanwhile, Skew measures the asymmetry in potential price movements.
The observation that VRP and Skew have remained consistent with average levels suggested stability in the market’s assessment of risk and potential price distributions.
At the time of writing: market sentiment remained uncertainwith a predominantly cautious attitude and fewer opportunities for significant gains.
Read Bitcoin’s [BTC] Price forecast 2024-25
At the time of writing, BTC was trading at $41,084.39, while its price had fallen by $41,084.39 1.27% in the last 24 hours. The total number of holders had also decreased during this period and stood at 52.83 million.
Bitcoin’s MVRV ratio also dropped significantly and stood at 45.5K at the time of writing, showing that most holders had no profits.
Source: Santiment