Glassnode highlighted that readings on the NRPL metric recently reached a high of approximately $17 million/hr before the price of Bitcoin started moving downwards again. This trend was outlined as one of the drivers behind the flagship cryptocurrency’s loss of its $70,000 footing.
According to the analytics firm, the heightened profit-taking activity among Bitcoin’s investors has continued to absorb bullish momentum, thereby converting it to bearish pressure. Notably, this pattern has repeated itself at multiple moments in the current cycle, specifically as Bitcoin attempts to rally to the upside.
Glassnode further explained that the degree of uncertainty currently in the geopolitical world has caused “demand depth” to compress. As a result, realization events like the last one have become too much for the market to absorb, explaining the recent slip below $70,000.
However, the waning market liquidity in recent weeks suggests that BTC price recovery is buoyed by seller exhaustion rather than by strong and consistent demand. Hence, the life of the recovery is truncated whenever sellers enter the market
Short-Term Holders Realize Losses As Price Nears $74KIn their post on X, Darkfost revealed that more than 28,000 BTC have recently been sent to exchanges, with these investors seemingly cutting their losses. These losses, pointed out the analyst, continued to grow as the Bitcoin price went into a steady decline.
As of this writing, Bitcoin holds a valuation of about $70,532, reflecting no significant movement in the past day.
