Bitcoin Sell Pressure Drops To One Month Low

Bitcoin is seeing a nice break from heavy selling. Fresh on chain data shows that the sell side risk ratio dropped to 7 basis points per day in early September, down sharply from 16 basis points during the peak in August. This means the overall market is seeing much less profit and loss realization relative to the total capital base.

Long term investors are driving this change. Their share of realized profits fell to 47 percent, a huge drop from 88 percent back in August. Even though a large block of older coins remains untouched near acquisition prices above the current market, long term holders are clearly choosing to hold rather than cash out right now.

Despite the calmer on chain activity, exchange data shows that spot selling still edges out aggressive buying for now. Traders should watch to see if incoming buyer demand can step up and absorb the remaining overhead supply as the market looks for its next big direction.