![Bitcoin [BTC] Bears Winning Over Bulls - Is It the Right Time to Short?](https://i0.wp.com/trading-u.s3.amazonaws.com/wp-content/uploads/2023/03/25183628/AMBCrypto_An_image_of_a_miner_wearing_mining_gear_at_the_market_2c279ef0-d765-40e7-abfb-7c005fd2d2cb-1000x600.jpg?fit=1000%2C600&ssl=1)
- Bitcoin saw a net outflow over the past three days; Going short may not be a good idea.
- Bitcoin whales are showing mixed reactions that explain the current standoff.
In the last few days we have seen Bitcoin [BTC] struggling to maintain its uptrend. Now the market is showing bullish weakness and the bears are trying to capitalize on it. The next few days could see a significant pullback and here’s why.
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Recent data suggests that Bitcoin’s failure to continue the rally above the $28,300 resistance level caused a loss of confidence among investors. The situation has been further exacerbated by miner outflows, which are currently hitting a monthly high, according to the latest Glassnode data.
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π #Bitcoin $BTC Miners’ Outflow Volume (7d MA) just hit a 1-month high of $1,801,563.42
The previous 1-month high of $1,771,798.83 was observed on Mar 23, 2023
View metric: https://t.co/zngg8o32ix pic.twitter.com/zqdO6P7CSn
β Glassnode Alerts (@glassnodealerts) March 25, 2023
Bitcoin miner outflows are often seen as a confidence indicator. This is because miners often hold onto their BTC when there are bullish expectations and sell when there are bearish expectations.
It is therefore not surprising that they dumped some BTC right after Bitcoin struggled to grow above its current resistance level.
Will Bitcoin outflows benefit the bears?
Bitcoin minersβ observations also align with BTCβs net flows of $119 million over the past 24 hours, according to Glassnode alerts. This is slightly less than the net inflow of -$190.5 million on March 24 and even lower than the net inflow of -$342 million on March 23.
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π Daily on-chain exchange flow#Bitcoin $BTC
β‘οΈ $729.1M
β¬
οΈ $848.4 million out
π Net Flow: -$119.2M#Ethereum $ETH
β‘οΈ Raised $576.6M
β¬
οΈ $701.4 million out
π Net Flow: -$124.8M#Tether (ERC20) $USDT
β‘οΈ $1.1 billion
β¬
οΈ $1.4 billion out
π Net Flow: -$332.9Mhttps://t.co/dk2HbGwPL4
β Glassnode Alerts (@glassnodealerts) March 25, 2023
It is important to note that net flows confirm that selling pressure has also slowed. In other words, contrary to expectations, Bitcoin may not necessarily face a strong bearish pullback this week. However, this is subject to the possibility of market events that can quickly change the outcome.
How much is 1,10,100 BTC worth today?
The lower net flows may explain why short sellers are not necessarily interested in executing leveraged positions. Bitcoin’s estimated leverage ratio is currently down to its lowest level since early 2023. In the meantime, financing rates have largely leveled off.
Source: CryptoQuant
The lack of confidence among short sellers and leveraged traders reflects mixed observations on bitcoin supply distribution. For example, addresses holding between 10,000 and 100,000 BTC have bought in the past three days, cushioning the price. The same whale category currently controls 12.13% of the circulating supply.
On the other hand, addresses holding between 1,000 and 10,000 BTC have been sold over the past three days. The same addresses currently control 23% of all BTC supply, so their impact is more pronounced.
Source: Santiment
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