Bitcoin Faces Downward Pressure As Short-Term Holders Remain Underwater

The Bitcoin market has continued to face downward pressure over the past few months, despite the fact that the average Bitcoin investor is still in profit.

However, short-term holders remain significantly underwater on their investments, posing a potential risk to the market in the near term.

The #Bitcoin market continues to experience downwards pressure over recent months, despite the average Bitcoin investor remaining profitable overall.

However, the Short-Term Holder cohort remains heavily underwater on their holdings, making them a source of risk for the… pic.twitter.com/nlE0K2WgPk

— glassnode (@glassnode) September 4, 2024

Looking at the Bitcoin 2-month chart, the TD Sequential indicator has flashed a sell signal, suggesting a potential correction ahead. If the crucial $51,000 support level fails to hold, Bitcoin could see a drop to as low as $40,600.

In the #Bitcoin 2-month chart, the TD Sequential indicator presented a sell signal anticipating a correction. If the $51,000 support level is lost, $BTC could drop to $40,600! pic.twitter.com/CxVpzfOrzU

— Ali (@ali_charts) September 4, 2024

Adding to the bearish outlook, active addresses on the Bitcoin network have hit new lows in 2024. The number of active addresses is now at the same level as it was three years ago, when Bitcoin was trading around $45,000. This decline in network activity may be an indicator of waning interest or participation in the market.

Active addresses on the $BTC network hit new lows in 2024

“Active addresses on the #Bitcoin network hit new lows in 2024, reaching the same level as 3 years ago, when the price of BTC was quoted at around $45,000.” – By @gaah_im

Read more