The post Bitcoin (BTC) Price Faces Tough Road Ahead Despite Recovery appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) holders faced a rough period last Monday as the price crashed from $61,000 to $54,000 within a few hours. This decline, tagged as one of the worst days for BTC this year, caused massive losses and liquidations.  While the coin has reclaimed the previously lost peak, data shows that the BTC price may still be in danger of another decrease. Bitcoin HODLer Behavior Lacks Confidence A crucial metric fueling this bias is Bitcoin’s Holder Net Position Change. The Holder Net Position Change tracks if long-term holders are accumulating more coins or decreasing their exposure to a cryptocurrency. When this number rises, it means that holders are buying more BTC, suggesting that the price may increase. However, a decrease implies that these long-term holders are cashing out and putting downward pressure on the price. According to Glassnode, long-term holders have sold some of their coins since August 5. Despite the spot-driven rally BTC had, this group still let go of 4,881 BTC on Saturday, August 10. Read more: Who Owns the Most Bitcoin in 2024? Bitcoin Holder Net Position Change. Source: Glassnode Another factor that suggests a price decrease in the spot ETFs netflow. Last Wednesday and Thursday’s trading sessions saw the 12 Bitcoin ETFs collectively register inflows. But on Friday, according to SoSoValue, the financial products recorded a netflow of -$89.73 million, indicating that there were more outflows than inflows. A surge in inflows into the ETFs was vital to Bitcoin’s run to its all-time high of $73,750 in March. The series of outflows in the second quarter of the year also revealed that institutional capital has been instrumental in raising BTC’s price. Spot Bitcoin ETF Netflow. Source: SoSoValue During that period, millions of dollars exited the ETFs, leading BTC to record a notable price drop. Therefore, if the inflows remain negative…

---

Filed under: News - @ August 11, 2024 8:10 pm