Bitcoin is experiencing notable selling pressure as market dynamics shift in favor of bearish sentiment. The analysis suggests that the situation is causing growing concern among investors.
Long-Term Holders Contribute to Selling Activity
According to PlanB, the creator of the Stock-to-Flow model, approximately 50% of the selling activity is attributed to long-term holders who are still feeling the effects of the tumultuous 2021 market. The remaining half consists of technical investors and those anticipating a prolonged bear market, further exacerbating the selling trend.
Bitcoin's Struggles Amid Market Uncertainty
Despite a brief recovery from a low of $85,000, Bitcoin has struggled to sustain its upward trajectory, recently retreating to $87,500. Analysts caution that if a genuine bear market is indeed in progress, the situation could deteriorate further, leading to increased volatility and potential losses for investors.
As Bitcoin faces significant selling pressure, recent discussions among analysts highlight the potential for a price reset that could benefit the market. For more insights, see the full analysis on this topic here.
