Key Points
- Bitcoin holders are selling at a loss, with key indicators showing a bearish market.
- Bitcoin’s Adjusted Spent Output Profit Ratio (aSOPR) has fallen below 1, indicating average selling at a loss.
Bitcoin holders are now selling at a loss following a profitable period. Key indicators suggest a bearish market control.
According to CryptoQuant data, Bitcoin’s [BTC](https://coineagle.com/price/bitcoin/) Adjusted Spent Output Profit Ratio (aSOPR) has dipped below 1. This is the first time since October 2023, indicating that investors are selling their holdings at a loss on average.
Understanding the aSOPR
The aSOPR measures the profit or loss realized when a coin is spent by its holders. If the value is above 1, it signifies that coins are being sold at a profit overall. However, a value below 1 suggests that investors are selling at a loss.
BTC’s recent price drop to under $61,500 has triggered a significant increase in sell-offs among its holders. CryptoQuant’s data reveals a rise in BTC’s supply on exchanges, with the exchange reserve spiking by 1% in the past week.
Miners Distributing Holdings
As of now, 2.006 million BTC are held across cryptocurrency exchanges. An increase in an asset’s reserve like this suggests a surge in selling pressure.
Miners are also distributing their holdings to mitigate losses, resulting in their reserve dropping to a three-year low. The recent decline in BTC’s price has led to a steady decrease in miner revenue from fees, making coin distribution a more suitable option for network miners.
Furthermore, the percentage of miner revenue derived from fees has declined by 44% since 6th March, according to Glassnode’s data.
In the coin’s futures market, its open interest saw a 14% decline between the 15th and 20th of March, as per Coinglass’ data. A decrease in an asset’s open interest like this suggests a decrease in the number of outstanding contracts as market participants are exiting their positions without opening new ones.
Currently, BTC’s futures open interest is $36 billion.
An assessment of BTC’s price movements on a daily chart reveals that bearish sentiment has become significant in the market. The coin’s Moving Average Convergence Divergence (MACD) showed that its MACD line crossed below the signal line on 15th March, causing the indicator to return only red bars.
This intersection often suggests that an asset’s short-term momentum is weakening relative to the longer-term momentum. This crossover signals a shift towards bearish momentum and is interpreted by traders as a signal to consider selling or entering short positions.
Also, BTC’s positive directional index (green), at 14.70, rested below its negative index (red), confirming that the bears had regained control of the market.
