• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
Bitcoin Wholecoiners

Bitcoin Sell-Side Risk Ratio Nears All-Time Lows, Big Move Soon?

Hououin Kyouma by Hououin Kyouma
5 days ago
in Bitcoin News
Reading Time: 3 mins read

On-chain data shows the Bitcoin sell-side risk ratio has approached all-time lows recently, a sign that a big move could be coming for the coin.

Bitcoin Sell-Side Risk Ratio Has Observed A Plunge Recently

As pointed out by the lead on-chain analyst at Glassnode in a Tweet, BTC sellers may have become exhausted recently. The “sell-side risk ratio” is an indicator that measures the ratio between the sum of all profits and losses being realized in the Bitcoin market and the realized cap.

The “realized cap” here refers to the capitalization model for Bitcoin that calculates a sort of “true” value for the cryptocurrency by assuming that each coin in the supply is not worth the same as the current spot price, but the price at which it was last moved.

As the profits and losses being harvested in the market are nothing but a measure of the selling pressure in the market, this indicator tells us how the selling pressure (or the sell-side risk) looks like relative to the value of the cryptocurrency (the realized cap).

When the value of this indicator is high, it means the investors are participating in a high amount of profit/loss realization right now. Such a market is usually high risk, as the price tends to be more volatile during periods with these values.

On the other hand, low values imply the holders are reluctant to sell currently. These conditions generally occur when the market has calmed down and accumulation tends to take place in such periods.

Related Reading: Litecoin’s MVRV Has Surged, Why This Is Bearish

Now, here is a chart that shows the trend in the Bitcoin sell-side risk ratio over the history of the cryptocurrency:

Bitcoin Sell-Side Risk Ratio

Looks like the value of the metric has observed a decline in recent days | Source: @_Checkmatey_ on Twitter

As shown in the above graph, the Bitcoin sell-side risk ratio has seen a sharp plunge recently, a sign that there is little profit or loss realization going in the market right now.

The indicator is now below the “low value realization” line that the analytics firm has defined (colored in red in the chart). Historically, whenever the metric has plunged into this zone, the market has built up towards a sizeable move in the price.

Related Reading: Sharks & Whales Accumulate Stablecoins, Why This Could Be Bullish For Bitcoin

Since such low values of the indicator imply the lack of sellers in the market, the common expectation may be that this can be a bullish sign. However, as is visible from the graph, this hasn’t necessarily been the case.

Both bullish and bearish price action has occurred following the formation of this pattern. Just back in March of this year, the indicator had shown this trend, but the cryptocurrency had followed up with a sharp correction.

Breaks into the high value realization zone (that is, the condition where there is a large amount of selling going on), though, have generally always been bearish for Bitcoin.

As the indicator has once again dipped into the low value realization area, it’s possible that a large move in the price may follow soon. Although it’s uncertain which direction exactly this volatility might go.

BTC Price

At the time of writing, Bitcoin is trading around $26,100, down 2% in the last week.

Bitcoin Price Chart

BTC appears to have plunged | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com
Tags: bitcoinBitcoin Sell-Side Risk RatioBitcoin Selling PressureBitcoin volatilitybtcbtcusd
Tweet123Share196ShareSend
Hououin Kyouma

Hououin Kyouma

Kyouma is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Kyouma has been writing for many years, first as a hobbyist and later as a freelancer. He obtained a bachelor's in physics in 2022 and is planning on starting a master's in the same field in the near future. Kyouma is enthusiastic about the cryptocurrency industry and holds an active interest in on-chain analysis. His hobbies include gaming, anime, and football. You can find Kyouma on Twitter at @Kyouma29.

Related Posts

Bitcoin BTC BTCUSDT

Is Bitcoin Headed For $34,000? Large Buyer’s Purchase May Signal Yes

6 hours ago
Bitcoin Bull

Bitcoin Rally Hopes Still Alive, If This Metric Is To Go By

10 hours ago
Bitcoin

Bitcoin Bulls Push BTC Back Up To $28K Amid Surging Address Activity

20 hours ago
Bitcoin

Upcoming Interest Rate Hikes Could Be The Next Big Challenge For Bitcoin, Here’s Why

3 days ago
Bitcoin (BTC)

The Best Decision Is To ‘Buy Bitcoin (BTC),’ Robert Kiyosaki Urges

5 days ago
Unknown BTC Miner

Bitcoin Just Got Invaded By A “Big, Unknown Miner,” What’s Happening?

5 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • Bware Labs Launches $INFRA Token, making high API...

    11 hours ago
  • Is InQubeta the Best Utility Crypto of 2023? Huge Growth...

    14 hours ago
  • Coinbase launches campaign to educate public on blockchain...

    15 hours ago
  • Utility Coins like Avorak AI will always outperform memes...

    15 hours ago
  • Expect Tremendous Returns for DigiToads (TOADS), Near...

    15 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.