Analyst Says “Short-Term Sellers Exhausted in Bitcoin”, Shares What to Expect Next

André Dragosch, Head of European Research at Bitwise, has identified a negative trend in net buying volumes on Bitcoin spot exchanges over the past three days.

Despite the downward movement, Dragosch noted a sharp increase in long-term Bitcoin liquidations, reaching their highest level since BTC's recent low on August 5th. This suggests that short-term sellers may be nearing exhaustion.

"Short-term wallets sent the most Bitcoin to exchanges at a loss since the August lows," Dragosch observed.

The Bitwise Cryptoasset Sentiment Index also indicates a shift in market sentiment from relatively bullish to more neutral levels.

Further analysis using Glassnode data suggests a change in Bitcoin's supply dynamics. The illiquid Bitcoin supply has reached an all-time high, while highly liquid and illiquid supply have hit yearly lows. This shift reflects a change in market behavior as more Bitcoin moves into long-term holding patterns.

Ayush Tripathi, a Bitwise Research Analyst, added that the supply of Bitcoin held by long-term holders (who have held their Bitcoin for at least 155 days) has increased since early October, despite the recent price drop. This indicates continued confidence in Bitcoin as a long-term investment, even as short-term demand weakens.

*This is not investment advice.
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