Short-term Bitcoin investors are currently facing challenges as the average price for short-term holders stands at $64,860. This could lead to panic selling if there is another significant sell-off in the market. The latest edition of the “Bitfinex Alpha” report reveals that short-term Bitcoin holders are experiencing the largest amount of unrealized loss since the bear market lows in 2022. This has increased the selling pressure on prices due to fears of another downturn in the market.
The Short-Term Holder MVRV ratio, which compares the current market price of BTC to the price at which coins were last moved on the blockchain, is currently below one point. This indicates that short-term holders would be selling at a loss if they decide to liquidate their positions, further increasing the likelihood of selling pressure in a bearish market.
Bitcoin’s price has recently fallen by 33% from its all-time high of $73,666, marking the largest decline of this cycle. The Mayer Multiple, which compares the current Bitcoin price to its 200-day moving average, dropped to 0.88 – its lowest level since the FTX collapse in November 2022. This metric is crucial for evaluating the severity of Bitcoin price movements and provides insights into potential buy or sell signals based on historical patterns.
The Short-Term Holder Realized Price (STH Cost-Basis) is currently at $64,860, representing the average purchase price for investors who have held their coins for 155 days or less. Bitcoin’s spot price has approached one standard deviation below this level, indicating significant stress among newer market participants and highlighting the intensity of the recent market downturn.
As of press time at 9:20 pm UTC on Aug. 12, 2024, Bitcoin is ranked #1 by market cap, with a market capitalization of $1.17 trillion and a 24-hour trading volume of $38.01 billion. The total crypto market is valued at $2.09 trillion, with a 24-hour volume of $84.46 billion, and Bitcoin dominance is currently at 55.93%.
Investors and traders are advised to closely monitor these market indicators and metrics to navigate short-term Bitcoin investing effectively and avoid panic selling in volatile market conditions. Understanding the dynamics of the market and staying informed about key metrics can help investors make more informed decisions and manage risks effectively in the cryptocurrency market.