A cryptocurrency analyst stated that the short-term drop in Bitcoin's price may not be as severe as last week's 10% plunge, as the selling pressure has significantly eased after Bitcoin first broke the six-figure mark—although others remain skeptical.
Bitfinex analysts stated in their market report on December 9: "Due to the decrease in realized profits and seller pressure, we can expect future declines to not be as severe as last week."
"Seller pressure relief" signal appears
According to CoinMarketCap data, on December 6, Bitcoin (BTC) fell nearly 10% from $103,493 to below $93,000 within 24 hours, just one day after Bitcoin's price first broke $100,000 on December 5.
Bitcoin has risen 0.34% over the past seven days. Source: CoinMarketCap
According to Cointelegraph, Bitcoin's price suddenly dropped from $98,338 to $92,957, triggering liquidations of long positions exceeding $303.5 million within an hour, leading to a total liquidation amount of $404 million in 24 hours.
However, Bitfinex analysts stated, "Signs of market stabilization are emerging."
"Realized profit RP tracks the dollar gains generated by Bitcoin transfers, reaching a peak of $10.5 billion daily during Bitcoin's surge to $100,000. However, this metric has since dropped to around $2.5 billion daily, a decline of 76%."
They explained that this indicates profit-taking has "significantly cooled off," and further selling may be "essentially less severe."
According to CoinMarketCap data, as of the publication of this article, Bitcoin's trading price is $97,483.
Bitfinex analysts also noted that the financing rate for Bitcoin has also "stabilized," explaining that the market is shifting to a "more balanced phase, where volatility may be more controllable in the medium term, and price movements will not be so unstable."
Financing APR heatmap. Source: CoinGlass
According to CoinGlass data, the financing rate for Bitcoin on Binance, the world's largest cryptocurrency exchange, is currently 0.01%.
However, Glassnode's chief analyst James Check remains uncertain whether the market will stabilize.
Check stated in a post on December 9: "The seller pressure from existing holders is now very significant, in my view, completely overwhelming the demand from ETFs and MSTR."
"There are a lot of intense signals," Check added.
Long-term holders have realized substantial profits
The realized price for long-term holders (the average price paid by long-term Bitcoin holders) is $24,481, indicating that long-term holders' average profit is about 400%.
Cointelegraph recently reported that during Bitcoin's ascent to $100,000, a significant number of long-term holders sold their Bitcoin. Some analysts suggest this could indicate that Bitcoin's price may be nearing a peak, and traders could be caught off guard as buyer demand begins to wane. Public. Zong. Good: Liu Liu says coins (weekly strategy analysis for Bitcoin and Ethereum from Monday to Saturday, long-term recommendations for quality individual coins and live analysis)
CryptoQuant writer Maartuun stated on December 8: "This is a game of musical chairs: enjoy the process, but be ready when the music stops."
