Bitcoin ‘sodlers’ dump $4B in two days as BTC sales hit 18-month high
Bitcoin (BTC) speculation will sell off as BTC price corrects to $40,000, the latest on-chain data suggests.
Figures obtained by on-chain analytics firm Glassnode show short-term holders (STHs) loading more than $2 billion in BTC on December 12 alone.
Bitcoin short holders set an 18-month selling record.
This week, Bitcoin saw its biggest one-day drop of 2023 — a total of 8.1% at one point, according to data from Cointelegraph Markets Pro and TradingView.
In response, a more speculative subset of the Bitcoin investor base followed suit, reducing exposure to what appeared to be cold feet on the market's view.
Glassnode shows that STHs, which include entities holding BTC for 155 days or less, shipped $1.93 billion worth of coins on December 11, followed by another $2.08 billion the next day.
Both days marked long-term highs in terms of STH selling pressure, with both profit and loss components joining the trend.
The last time one-day sales surpassed the $2 billion mark was in June 2022 — in response to the impending collapse of blockchain company Celsius.
In a post on X (formerly Twitter) on December 12, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, noted the importance of weekly STH movements.
“A total of $2B, with a loss of $1.1B,” the opinion piece said.
“This is for anyone who bought between December 6th and December 13th, possibly retail, after seeing Bitcoin up 150% YTD.”
In terms of BTC, volumes were minimal, with December 12 marking the highest since early July this year. At that time, BTC/USD dipped to $25,000 and then rebounded above the $30,000 mark.
Mayer Multiple shows classic resistance skills
Next, Glassnode pointed to several on-chain indicators that suggested STHs could fill their bullish position for the time being.
Related: ‘Take some rest and go' — Bitcoin price replicas 2020 bull run fractal
A 19-month high of nearly $45,000 this month is “significant,” researchers said, adding that “demand-filling[fatigue]may be in play.”
“After the strong 2023 so far, this rally looks particularly resistant, with on-chain data suggesting STHs are the key drivers. – Chain” was released on December 12.
Among the indicators offered is the Meier Multiple, which describes the relationship of the current spot price relative to its 200-week moving average.
The multiple is quickly approaching 1.5 – this area, while not “overbought”, has served as bull market resistance during Bitcoin's history.
“The current Meier Multiple indicator is at 1.47, close to the ~1.5 level that usually forms a resistance level in previous cycles, including the November 2021 ATH,” Glassnode noted.
“Perhaps an indication of the weight of the 2021-22 bear market, it has been 33.5-months since this level was breached, the longest since the 2013-16 bear market.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
