- The Bitcoin market has been marked by exhaustion as prices continue to trade sideways.
- Day traders reduced accumulation as many become uncertain about the coin’s next direction.
Bitcoin [BTC] price has been trading within a narrow range of $29,000 to $32,000 since April, with significant resistance at $30,000. This has led to a state of extreme apathy and exhaustion in the market, with volatility readings and several key on-chain indicators reaching all-time lows, Glassnode found in a new report.
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BTC, notorious for significant price volatility, has recently seen its volatility compress. While some analysts believe this has brought much-needed stability to the market after the turbulent trading period in 2022, others believe the lack of volatility is a sign that investors are unsure about the direction of the market and have let their hand slip. which caused the price to stagnate. market.
Short-term holders and long-term holders see things differently
Glassnode assessed the compression of BTC’s volatility by considering the behavior of the coin’s holders in the short and long term. It analyzed the coin’s Sell-Side Risk Ratio metric and found that it hit an all-time low for its short-term holders.
The Sell-Side Risk Ratio metric tracks the ratio of the sum of all gains and losses realized in the BTC market to the capital realized.
An all-time low among short-term holders means that most investors in this category willing to take profit or loss at this price range have already done so. As a result, “the market must take a step to motivate new spending,” while new demand craters emerge.
Source: Glassnode
The long-term holders of BTC took a different approach. According to Glassnode, “The LTH profit/loss ratio remains small in magnitude and a long way from previous bull market conditions.”
This is because long-term holders looking to take profit or loss in this price range have not done so yet.
With the sell ratio among this cohort of investors also approaching an all-time low, Glassnode found that the BTC market was close to a point where it would need to experience volatility and price breakouts (in both directions) to “break this current spell.” of investor apathy and exhaustion.”
Source: Glassnode
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Accumulation decreases among daily traders
As positive sentiment fades, buying pressure on the daily chart has also eased. On a D1 chart, BTC’s main momentum indicators rested below their respective centerlines at press time.
The coin’s Relative Strength Index (RSI) was 48.88, while its Money Flow Index (MFI) was 43.48. This indicated that BTC distribution exceeded accumulation among the coin’s daily traders.
Source: BTC/USDT on TradingView