Bitcoin may see a rough start to 2023; Are these BTC holders tolerant?

  • The number of BTC option transactions over $1 million has reached its lowest level in two years
  • The negative sentiment surrounding BTC is still in the market

It is set at 4331 at the time of publication, the number of bitcoins [BTC] Data from Santiment revealed that electoral transactions exceeding $1 million represented the lowest level since December 2020.

There is a strong correlation between the price of BTC and option transactions over $1 million. This is because voters’ reluctance to accumulate or distribute can lead to a steady decline in the price of Bitcoin.

Similarly, for BTC transactions above $100,000, at 31,300 transactions at the time of writing, this is the lowest point since 2019.

0.45x decrease if BTC falls to Ethereum’s market cap?

Additionally, CryptoQuant Analysts BinhDang It found a significant drop in BTC from unspent transaction outputs (UTxOs) held by a group of BTC investors holding between 1,000 and 10,000 coins.

BinhDang evaluated BTC’s historical performance and found that it compares to previous bear cycles. The current bear cycle has notably been plagued by a decline in UTXOs held by investors with portfolio balances of 1,000 to 10,000 coins.

With the continued research and development of the market, BinhDang concluded,

“Overall, the market can only recover when this group has enough confidence to accumulate again. At the moment, we are still not getting positive signals from this group.”

Source: CryptoQuant

In addition to low elective activity on the BTC network, short-term holders continue to sell despite losses, CryptoQuant analyst Phi Deltalytics found.

According to Phi, an assessment of the short-term production profitability ratio of BTC showed this These participants prioritized liquidity over preserving their assets, even if it meant losses.

Source: CryptoQuant


On the daily chart, the On Balance Trading Volume (OBV) of Bitcoin is seen at -2.127M. A negative OBV indicates that the volume of the asset sold is greater than the volume purchased, which promotes a price decline.

This situation is confirmed by the fact that BTC’s Relative Strength Index (RSI) and Money Flow Index (MFI) have settled below neutral areas at the time of publication. Both are in downtrends, the RSI was 43.75, while the Microfinance Index was 40.17.

Read bitcoins [BTC] Price forecast 2023-2024

A continuous decline in the RSI and the microfinance index of the asset indicates a sharp decline in the buying momentum, which may lead to an oversold of this asset. In order for a shift to occur, a change in the beliefs of investors is required.

Source: TradingView

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