Bitcoin Sees Reduced Selling Pressure as Fed’s FOMC Meeting Yields Rate Cut: CryptoQuant

The Bitcoin market is currently seeing easing pressure after a period of intense selling from investors. The declining pressure is evident in reduced deposits into exchanges and a significant recovery in bitcoin’s (BTC) price over the last three weeks. Analysts at the research firm CryptoQuant reported that continued low selling pressure could trigger a relief rally in BTC. This uptrend could be supported by the 25 basis points interest rate cut announced by the Federal Reserve during the just-concluded Federal Open Market Committee (FOMC) meeting. Reduced Selling Pressure According to CryptoQuant, BTC recovered from $80,000 on November 21 to a monthly high of $94,000 a few days ago. At the time of writing, the asset was trading around $90,000, up 1% weekly. Bitcoin deposits into exchanges have fallen from 88,000 BTC in mid-November to 21,000 BTC today. The deposits began to decline after the cryptocurrency hit its all-time high of $126,000, as large players reduced their transfers to trading platforms. Currently, the share of total deposits from large players has plummeted from a 24-hour average high of 47% in mid-November to 21% today. Additionally, the average deposit has decreased by 36%, from 1.1 BTC to 0.7 BTC, over the same timeframe. Incoming Rally for BTC? The decline in exchange deposits and downward price pressure also comes as large investors and short-term holders realize their losses. About a month ago, new and old whales realized $646 million in losses, the largest since July. This came as bitcoin’s price first fell below $100,000. Since then, this cohort of investors has realized at least $3.2 billion in losses. On the other hand, short-term holders have been offloading their assets at a negative profit margin over the last four weeks. The lowest reading sits at -7%, while the Spent Output Profit Ratio (SOPR) hovers below 1. “Historically, selling pressure eases when market participants realize they have incurred heavy losses,” CryptoQuant analysts explained. If the selling pressure stays eased off, BTC could return to the $99,000 level, which is considered the lower band of the Trader On-chain Realized Price range. This level usually marks a resistance during bear cycles, alongside the on-year moving average and the Trader On-chain Realized price, which are $102,000 and $112,000, respectively. The post Bitcoin Sees Reduced Selling Pressure as Fed’s FOMC Meeting Yields Rate Cut: CryptoQuant appeared first on CryptoPotato .