Even as Bitcoin hovers around $20,000, it appears that a bulk of the traders are waiting for the right buying opportunity. For the first time since June 24, Bitcoin had on Tuesday dropped below $20,000. This led to further speculation on potentially more drop in Bitcoin price.
On-Chain Data Shows Market Sentiment
As per on-chain data on CryptoQuant, it appears that a majority of traders are waiting for the next big drop in prices. However, the price anticipation looks to be for the short term opportunity.
In what appears to be a result of major selling activity, there is a strong upward trajectory in USDC reserves. The uptrend, however, is not a result of any major inflow to the exchanges. The wait seems to be on for a suitable buying range.
Also, it is largely short term traders who are selling Bitcoin currently. A majority of those selling are part of a range between 6-12 months from holding Btcoin. “The 6-12 months holders are the ones actively sending coins to exchanges.”
Whales Are In Wait Mode?
On-chain data also suggests it is not just small and average traders but big whales who are waiting for a good chance to accumulate cryptocurrencies. Interestingly, the Bitcoin holdings of whales is not increasing at the moment, data reveals.
