- According to a new report, investors holding 1-100 Bitcoin (BTC) have increased their coin distribution in the past few days due to the overall negative sentiment.
- In general, an increase in Spent Outputs of these BTC holders usually indicates a potential increase in selling activity by these investors.
- While overall sentiment remained in the negative zone, an evaluation of BTC’s exchange activity showed a decrease in Bitcoin’s exchange reserves.
According to recent data, investors holding 1-100 BTC in their wallets may be selling their assets, but buying activity continues to dominate.
BTC Holders May Be Selling
According to a new report, investors holding 1-100 Bitcoin (BTC) have increased their coin distribution in the past few days. An evaluation of BTC’s Spent Outputs for wallets holding between 1 and 100 BTC by CryptoOnchain revealed that a significant percentage of leading coins have been moved or spent from these wallets in recent days.
In general, an increase in Spent Outputs of these BTC holders usually indicates a potential increase in selling activity by these investors. This could be due to various factors such as profit realization, market sensitivity, or belief that the price may further decline.
However, it could also mean that these investors have transferred their BTC assets to other assets in recent days. CryptoOnchain noted that the largest increase in Spent Outputs was observed in wallets holding 10 to 100 BTC, which currently stands at around 28,000 BTC after reaching approximately 36,170 BTC in recent days, stating:
“The largest increase can be seen in wallets holding 10 to 100 Bitcoin, which currently stands at around 28,000 after reaching approximately 36,170 BTC in recent days.”
The decision to reduce BTC holdings may be due to the continuous decline in positive sentiment. According to Santiment, BTC’s weighted sentiment has been negative since June 9th.
Bitcoin’s Exchange Reserves Decreasing
While overall sentiment remained in the negative zone, an evaluation of BTC’s exchange activity showed a decrease in Bitcoin’s exchange reserves. This metric tracks the total amount of BTC held on exchanges. An increase in this metric indicates a rally in selling pressure, while a decrease indicates an accumulation.
According to CryptoQuant’s data, BTC’s exchange reserves showed a downward trend between June 2nd and June 25th, followed by an increase until the end of the second quarter. The price movements during this period resulted in significant volatility. This may have led many individuals to close their trading positions and send their BTC to exchanges for selling.
However, in the past two days, this metric has decreased since the beginning of July, indicating a return to normalcy.
Meanwhile, while a certain group of BTC holders may be selling, buying activity continues uninterrupted among others. This has been confirmed by looking at BTC’s price chart.
As of press time, the main momentum indicators RSI and MFI are resting above neutral levels at 65.57 and 71.16, respectively. At these points, BTC approaches overbought levels. While BTC’s price rests near the upper band of the Bollinger Bands indicator at the time of writing, nearing overbought levels may encounter resistance and lead to a pullback or consolidation period.
