Bitcoin (BTC) Sees Sell-Offs from Short-Term Holders, Records Biggest Outflow of the Month

The recent volatility in Bitcoin’s [BTC] price has led to increased activity among traders and holders. While Bitcoin has managed to maintain

Recent volatility in the Bitcoin [BTC] market has sparked increased activity among both traders and holders.

As Bitcoin attempts to maintain its position around the $60,000 level, the price fluctuations have prompted some holders to adjust their strategies, leading to sell-offs.

Bitcoin sees sell-offs from short-term holders

An analysis of recent data from CryptoQuant revealed that some previously dormant Bitcoin networks have shown renewed activity.

Specifically, an examination of the 1w-1m spent output age bands indicated that a significant amount of Bitcoin—33,155 BTC—has been moved by short-term Bitcoin holders.

This uptick in activity among short-term holders may suggest immediate market sell-pressure.

Bitcoin Sell-Offs. Source: CryptoQuant

The current market volatility and uncertainty are likely influencing the decision to transfer and sell these holdings.

Investors may be seeking to lock in profits after Bitcoin’s recent price movements or to mitigate potential losses if they anticipate further declines.

Furthermore, some may be adjusting their portfolios in response to the changing market dynamics.

This increased activity among short-term holders could add downward pressure on Bitcoin’s price, especially if these transfers lead to significant selling on exchanges.

Bitcoin records biggest outflow of the month

In contrast to the recent sell-off activity from short-term holders, Bitcoin recorded its largest outflow on the 26th of August, signaling a significant shift in the market behavior.

An analysis of CryptoQuant’s exchange netflow showed that it was strongly negative, around -45,432 BTC. The last time Bitcoin experienced a negative outflow of this magnitude was in June, nearly two months ago.

A negative exchange netflow indicates that more BTC was withdrawn from exchanges than was deposited. This trend is usually considered bullish, suggesting that holders are moving their Bitcoin off exchanges. When investors withdraw their assets from exchanges, it typically reflects confidence.

Bitcoin Exchange Netflow. Source: CryptoQuant

Moreover, this movement also contrasts with the selling pressure seen from some short-term holders.

This implies that while some market participants are locking in profits or mitigating risks, a larger group of investors is choosing to hold their BTC off exchanges.

BTC’s volatility stretches

An examination of Bitcoin’s daily trend reveals the ongoing volatility that Bitcoin has been experiencing.

A study of its Bollinger Bands—a technical indicator that measures price volatility—showed that the bands have stretched in recent days, reflecting the increased price fluctuations.

Bitcoin Price Analysis. Source: TradingView

In the last trading session, Bitcoin lost over 2% of its value and has continued to decline by almost 1% in the current session.

As of this writing, BTC was trading at approximately $62,401. The widening of the Bollinger Bands indicated that the market has experienced higher volatility, with price movements becoming more pronounced.

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