Bitcoin (BTC) sees $3 billion sell-off: Is it a bearish signal?
According to Onchain data, Bitcoin ($BTC ) long-term investors (LTH) have seen a significant change in their activity.
LTHs are generally defined as investors who have held their coins for more than 155 days. According to Glassnode data, Bitcoin’s “Hodler Net Position Change” fell to a five-month low on Tuesday.
The metric in question reflects the overall buying and selling activity of long-term Bitcoin investors. This decline shows that the group sold over $3 billion worth of BTC that day. The sales on November 18 were the highest amount recorded since June 26.
According to Santiment data, Bitcoin’s market value-to-realized value ratio (MVRV) indicates that the pair may be overvalued. BTC’s current MVRV ratio is at 182.06 percent. This ratio shows that Bitcoin’s current market value is significantly higher than its realized value. If all #Bitcoin holders sell, they will make an average profit of 182.06 percent.
In recent weeks, Bitcoin trading has been largely profitable. As of November 20, the profit-loss ratio in BTC’s daily trading volume (as assessed using the 30-day moving average) is at 2.01. This means that for every BTC transaction that results in a loss, 2.01 transactions result in a profit.
If long-term investors continue to sell, the Bitcoin price could fall to support levels below $90,000. According to the Fibonacci indicator, the next critical support level is at $83,983. However, if the selling pressure decreases and positive news flow continues, Bitcoin could see new highs.