Since the US-Israeli war with Iran began in late February, Bitcoin has traded in a narrow range between $65,000 and $73,000. As the battle dragged on, resistance spread to Ethereum and the broader altcoin market.
They comment on the same issue in their weekly markets. updateCoinbase analysts led by David Duong noted that the panic selling that was prevalent across Bitcoin (BTC) and Ethereum (ETH) in February has dropped significantly.
Citing the Spent Output Profit Ratio (SOPR), a metric that tracks whether short holders (STH) are selling at a loss or at a profit, Coinbase added:
The rise in the STH SOPR for BTC and ETH that began in late February suggests that spot demand has been strong enough to absorb the offsetting selling pressure recently, indicating a more resilient market positioning.
duong added We believe that panic selling or capitulations always pave the way for a reset in spot positioning and a potential sustainable recovery.
Bitcoin panic selling drops 87%
A similar opinion was shared by Bitfinex analysts and daily Bitcoin Loss sales dropped significantly from $3 billion to $370 million – An 87% decrease in selling pressure.
Analysts added,
The group that wanted to sell at a discount largely exhausted itself. This week’s ETF flows will show whether new demand kicks in or the gap narrows further.
Spot BTC ETFs so far this week recorded Daily net inflows of $167 million and $250 million were recorded on Monday and Tuesday, respectively.
If the entry line holds throughout the week, perhaps the bulls could attempt to climb above $73,000. Otherwise, the side structure may extend as Bitfinex analysts predicted.
What’s next for BTC?
The view is enhanced with price charts. Losing the middle range of the Bollinger Bands would likely send BTC to $65k or $66k. If the upcoming US-China talks do not produce a positive outcome for energy markets and the West Asian crisis, the price may fall further.
Losing the neutral level of the MACD death cross and RSI could herald potential extra losses that could drag BTC lower. In fact, according to Coinbase, a sustainable recovery may only be possible if BTC overcomes the $73,000 resistance.
Final Summary
- Daily sales of Bitcoin dropped by a significant 87%, falling from $3 billion to $370 million.
- Bitfinex analysts believe that if ETF flows remain green, the decline in pressure could set the stage for a sustainable recovery.
