Bitcoin 'sodlers' dump $4B in two days as BTC sales hit 18-month high in the Web 3.0 Blockchain era.
Bitcoin 'sodlers' dump $4B in two days as BTC sales hit 18-month high

Panic selling occurred among Bitcoin (BTC) speculators as the BTC price dropped towards $40,000, according to the latest on-chain data.

Glassnode, an on-chain analytics firm, reported that short-term holders (STHs) sold off more than $2 billion worth of BTC on Dec. 12.

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Bitcoin short-term holders set 18-month selling record

Data from Cointelegraph Markets Pro and TradingView reveals that Bitcoin experienced its most significant single-day decline of 2023 this week, with a drop of 8.1%.

The more speculative part of the Bitcoin investor community responded to this by decreasing their holdings, likely due to their concerns about the market outlook.

Glassnode states that STHs (entities with Bitcoin holdings of 155 days or less) sent a total of $1.93 billion worth of coins to exchanges on Dec. 11, followed by another $2.08 billion the day after. Both of these days set a new 18-month high in terms of STH selling pressure, with entities both in profit and loss taking part in the trend.

The last time that single-day sales surpassed the $2 billion mark was in June 2022, in reaction to the impending collapse of blockchain firm Celsius.

James Van Straten, research and data analyst at crypto insights firm CryptoSlate, commented on the significance of the week’s STH movements on X (formerly Twitter) on Dec. 12, noting that “$2B in total, with $1.1B in loss.”

In terms of Bitcoin, the Dec. 12 figure was the highest since the start of July this year, when BTC/USD had just recovered above the $30,000 mark after dropping to $25,000.

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Mayer Multiple suggests classic resistance is looming

Glassnode has identified numerous on-chain signals which may indicate that STHs have reached their limit in the current bull market.

The profit-taking seen around the 19-month high near $45,000 is “significant,” researchers stated, and this could be a sign of “potential exhaustion” of demand.

“The present rally appears to have encountered resistance, with on-chain data pointing to STHs as a major contributor,” they wrote in the conclusion to the firm’s latest weekly newsletter, “The Week On-Chain,” released Dec. 12.

One of the indicators highlighted was the Mayer Multiple, which describes the ratio of the current spot price to its 200-week moving average.

The Multiple is quickly approaching the 1.5 mark — an area which, although not an “overbought” level, has served as a resistance point during Bitcoin’s history.

“The present value of the Mayer Multiple indicator is at 1.47, close to the ~1.5 level which has often acted as a barrier in prior cycles, including the Nov 2021 ATH,” Glassnode said, referring to the web 3.0 blockchain projects 2021.

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