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3 on-chain indicators suggest the Bitcoin price sell-off is losing steam

Published 05/31/2021, 03:05 PM
Updated 05/31/2021, 04:40 PM
3 on-chain indicators suggest the Bitcoin price sell-off is losing steam
BTC/USD
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BTC/USD
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Bitcoin has entered a consolidation phase following its May 19 crash from $42,600 to $30,000 on Coinbase. The flagship cryptocurrency recovered its losses quickly and reclaimed $40,000, but it failed to log a clear bullish breakout above this resistance level, and at the time of writing, the price remains pinned below $40,000.

The latest price action in the Bitcoin (BTC) market has been, at best, choppy, with traders showing no clear indication of their short-term bias. Some analysts have predicted that if the BTC/USD price does not break above $40,000, it may very well fall to as low as $20,000 in the coming days.

Bitcoin Entity-Adjusted SOPR. Source: Glassnode
Bitcoin spent output age bands, calculated per 7-day moving average. Source: Glassnode
Traders who held Bitcoin in wallets for 1-6 months moved them in May. Source: Glassnode
Bitcoin supply held by long-term holders kept increasing amid the May crash. Source: Glassnode
Exchange's Bitcoin reserves are down 14,207 BTC in the last 7 days. Source: Glassnode
Convinced Bitcoin bulls continue stacking through the price dip, Source: Glassnode.
Bitcoin supply held by wallets holding 0.01–0.1 BTC spikes as prices fall. Source: Glassnode

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