With the price of Bitcoin dropping, there has been a lot of selling by investors. This selling trend has contributed to a further decline in the price of digital assets in recent times. However, as the downtrend continues, there has been a noticeable decrease in the amount of BTC being sold by owners. The decrease in the number of addresses sending their coins to central exchanges indicates a lot of information about this.
Sellers are starting to calm down
Over the past year, the number of bitcoin addresses sending BTC to central exchanges, most likely to sell their holdings, has grown incredibly. But it has started to decline in recent weeks as the sell-off has begun to subside.
according to glassThe number of addresses sending bitcoin to exchanges fell to a new 22-month low on Thursday. The number was about 4,445,369. But on Friday, another consecutive decline was recorded. This time, the number of addresses sending BTC to exchanges was 4,443,202.
Bitcoin falls to mid-$18,000s | Source: BTCUSD on TradingView.com
It is a far cry from the more than 6,000 wallets that were sending BTC to central exchanges in mid-2022. While the increase in wallets sending BTC to exchanges has been correlated with lower prices back in the second quarter of 2022, the opposite is now the case with The decline coincided with the decline in the price of Bitcoin.
What does this mean for bitcoin?
Of course, such data points to the fact that there is an increasing accumulation trend among investors but not every measure point for this. An example of this is the HODLer net position change that Glassnode reported on Friday.
Instead of being on the rise as expected in an accretion trend, the HODLer’s net change position continues to decline. It has now reached its lowest level in one month at 51997.708. This shows that even if there is selling fatigue, it is still enough to put pressure on the price of the digital asset.
The supply of active bitcoin is always increasing. It has now touched a new one-month high of 718,437.728 BTC. It is slightly higher than the previous September 11 high of 717,097.427 BTC, and still gives credence to the fact that the sell-off continues.
Bitcoin price is also subject to selling pressure. The digital asset is currently trading below $19,000 and is not showing any signs of a significant recovery.
Featured image from CNBC, charts from TradingView.com
Follow Best Owie on Twitter For market insights, updates, and sometimes funny tweets…