Bitcoin Takes $100M+ ‘Sell-Side’ Days as Bears Lose BTC Price
Bitcoin (BTC) sellers failed to correct a known bull market this cycle, a new analysis concludes.
In an April 5 post on X (formerly Twitter), Glassnode's anonymous on-chain analyst Checkmate revealed that BTC price declines are rarely 20%.
Bitcoin Bears Say 20% Return “Still Uncontrolled”
Bitcoin may have retreated from new all-time highs near $74,000, but in percentage terms, the recent corrections have been modest.
This is even more apparent when compared to historical bull markets, Checkmate points out.
In uploading data from ChartingSuite, Checkonchain pointed to the fact that, despite taking large profits and selling at high reaction rates, sellers – at most – underperformed the market by 20 percent.
That event came only once in mid-September last year, with subsequent declines not exceeding 15.8%.
“Still my favorite Bitcoin chart of this cycle,” Checkmate commented.
“The market is taking a hundred million dollar selloff, and the bears still haven't pulled back 20%.”
In contrast, the previous bull market cycle between late 2019 and late 2021 saw two drawdowns of more than 50%, while the Covid-19 result since March 2020 was 61.4%.
Discussing the figures, Checkmate however admits that statistics are on the side of history.
“Understood that we'll get one –> we're surprised we haven't found one yet,” he wrote.
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Half a billion BTC off the table
As Cointelegraph continues to report, Bitcoin market dynamics have changed dramatically in 2024.
Related: Bitcoin is a hedge against ‘terrible' government fiscal policy – Catie Wood
Of these, the main place in the United States is the arrival of Bitcoin Exchange Traded Funds (ETFs), which, since its launch in January, have bought more than 500,000 BTC.
This buy-side support, coupled with events such as multi-year lows in exchanges' BTC balances, is fueling sentiment for a return to price discovery.
Commenting on the ETF's record-breaking performance this week, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, cautioned observers against getting carried away.
“The income streams were that fantastic, and without ETFs, btc is like $30k prob, so look at the big picture,” X wrote in part in one X post.
Balchunas added that ETF products see net withdrawal days and this is a normal behavior of investors.
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.
