Bitcoin selling pressure sharply decreases, recovering to $90,000, raising expectations for a short-term rebound

Source: TokenPost Original Title: Bitcoin($BTC) Selling pressure drops sharply… Recovery to $90,000 sparks expectations of short-term rebound Original Link:

Bitcoin market selling pressure eases, rebound expectations rise

The selling pressure in the Bitcoin(BTC) market is easing, and the expectation of a rebound is increasing. Recently, Bitcoin prices have surged sharply over the past three weeks, with exchange inflow volumes dropping dramatically, which is seen as a major factor. The market sentiment has been further boosted by the expectation that the US Federal Reserve(Fed) will cut the benchmark interest rate by 25 basis points.

According to a recent report by market analysis firm CryptoQuant, Bitcoin exchange inflows have decreased sharply from 88,000 BTC in mid-last month to the current 21,000 BTC. The inflow proportion from whales(large holders) has also decreased from an average of 47% per day to 21%, with the average inflow size dropping from 1.1 BTC to 0.7 BTC, a decline of 36%. This indicates a clear reduction in the possibility of large-scale selling.

After falling to about $80,000 on November 21, Bitcoin recently rebounded to $94,000. As of the report time, it was around $90,000, up 1% weekly. CryptoQuant analysts believe that if the current subdued selling momentum continues, Bitcoin may rebound in the short term, continuing the so-called “loose rebound.”

Confirming loss-motivated selling helps reduce selling pressure

Not only whales but also short-term holders have been selling assets at a loss in recent weeks. According to CryptoQuant data, about a month ago, new and old whales realized losses of $646 million, followed by a total of over $3.2 billion in realized losses. Short-term holders have also been selling Bitcoin at a loss over the past 4 weeks on average, with the SOPR( (Spent Output Profit Ratio) indicator remaining below 1. SOPR below 1 means most tokens are being sold at a loss at the time of sale.

CryptoQuant believes this loss-motivated selling could have a positive impact on the market. Recognizing losses and selling Bitcoin can temporarily ease additional selling pressure. Historically, large-scale loss-motivated sales have also led to short-term rebounds.

Bitcoin approaches major technical resistance zones

According to CryptoQuant analysis, if Bitcoin rebounds further, the $99,000 zone could become a resistance level. This zone corresponds to the lower end of the on-chain “realized price band.” Additionally, the $102,000 level, where the 1-year moving average is located, and the $112,000 level, corresponding to the trader realized price line, are also identified as major resistance zones.

If the alleviated selling momentum continues and supply-demand conditions improve, Bitcoin may attempt to break through these resistance levels, but several short-term price obstacles still remain.

) Market interpretation

The Bitcoin market is experiencing a dual effect of investor loss-motivated selling and a significant decrease in exchange inflow volumes, which alleviates selling pressure. The recent expectations of rate cuts also add momentum to the upward trend.

Strategy highlights

The decline in exchange inflow volumes and whale inflow ratios can be seen as short-term market stabilization signals. However, given the numerous resistance levels on-chain, caution should be exercised in monitoring the breakthrough of key price levels to avoid blind optimism.

Terminology explanations

SOPR### (Spent Output Profit Ratio)(: An indicator reflecting investors’ profit or loss status when selling tokens. A value below 1 indicates selling at a loss is dominant.

Trader realized price: An on-chain calculated average cost price of traders, used to identify major resistance zones.