Bitcoin Sell-Side Risk Ratio Drops Below 0.1%: Is the Market Approaching a Bottom?

• Long-term holders are selling, adding pressure to Bitcoin’s supply and creating market uncertainty.
• A Bitcoin OG sold 1,176 BTC for $136M, while dormant wallets reactivated, signaling potential liquidation.
• U.S. spot Bitcoin ETFs saw 5,900 BTC inflows, boosting institutional demand despite ongoing selling pressure.

Bitcoin (BTC) is trading at $115,110, up slightly 0.29% over the past day. Pressure on supply has been added in recent days by selling from long-term holders. According to Lookonchain, a Bitcoin OG cashed 1,176 BTC ($136 million) on Hyperliquid. This was after these 35,991 BTC ($4.04 billion) were sold in exchange for 886,371 ETH just weeks ago. This action is under scrutiny in the market.

The seller retains 49,634 BTC, worth more than $5.4 billion. The coins are held in four wallets. Yet even with those huge stakes, their selling spree has left them still holding less in total. Sales by early investors like this could move the market around, creating liquidity shocks. It’s a crucial time for Bitcoin’s stability of price.

Dormant Bitcoin Wallets Spark Liquidation Fears

Whale Alert caught an account with 479 BTC worth $53 million. The coins on this address have been moved after 12.8 years of dormancy. A second wallet with 445 BTC was activated after nearly 13 years. That’s a sign of possible liquidation risk, compounding the pressure on the market.

Also Read: Bitcoin Faces Key Resistance at $116K, Eyes Breakout to $119K

Bitcoin’s Sell-Side Risk Ratio, meanwhile, has fallen beneath 0.1%, analyst Ali said. This level is usually an indication that a local price bottom is in place. It frequently results in low sell pressure accumulation zones. It could indicate that the market is getting close to reaching a level from which sell-offs decelerate. Traders are now waiting to see if this presages a change in sentiment.

Source: X

Meanwhile, buying interest from spot Bitcoin ETFs in the United States is increasing against selling pressure. According to analystical platform Glassnode, BTC ETFs saw inflows of 5,900 on Thursday. This is the biggest one-day inflow since July. And the inflows have helped propel weekly ETF flows into positive territory.

Source: Glassnode

This creates a battle between institutional buying and mass selling. ETFs are soaking up the coins in size, even as long-term holders shed supply. It’s a battle for who controls the market. The price of BTC has been trading slightly above $114,000 per coin, making it an important moment to consider the future direction of the cryptocurrency.

Bitcoin Faces Key Resistance at $116,000

On the charts, Bitcoin (BTC) is in a descending triangle at the moment. The price is facing resistance near $116,750. The bulls are currently getting some support at the 50-day EMA, which is at $114,360. But with the RSI at 57, the momentum of BTC is positive without being overextended. Traders are keeping a close eye out for any breakouts or reversal signs.

Source: TradnigView

Recent candlesticks on the chart are spinning tops reflecting indecision in the market. This is standard before volatility rises. Should buyers serve to continue the move, they could take a shot at $122,200. Another such shift could propel BTC price to $124,500. A close below $114,000, though, and prices could drop toward $112,000.

For traders interested in entering the market, a breakout above $116,750 could indicate long positions. A crack above this level would direct the price towards $119,500 and $122,200. For more cautious traders, we suggest waiting for a pullback to $112,000. This is exactly where demand and trendline met which is a possible buy zone.

Also Read: Bitcoin and Ethereum Lead $3.3 Billion Crypto Inflows as Sharks Accumulate 65K BTC