Cryptocurrency traders need to keep a close eye on the behavior of investors and market indicators to understand market trends. Recently, data from CryptoQuant has revealed that short-term traders are preparing to sell their Bitcoin. The Exchange Reserve metric, which measures the potential coins that are ready to be sold in the market, has increased to 2.19 million worth of Bitcoin stored in exchanges. This suggests that short-term traders are getting ready to sell their holdings.
Another metric, the Short Term Output Profit Ratio (STH-SOPR), measures the ratio of spent outputs in profit. The STH-SOPR indicator has touched 1.05 on March 14th, indicating that short-term traders dominate the market currently.
There are several factors that may be driving this trend, including the upcoming FOMC meeting on March 22nd, the approach of Ramadan for Muslim traders, and some traders feeling satisfied with their profits and preparing to exit the market at $30k.
Furthermore, the $29k to $32k price range presents a significant resistance level that needs to be taken into account. As the current price is already at $27k+, traders are preparing to gradually sell their Bitcoin supply. Traders and investors are advised to proceed with caution as the FOMC meeting on March 20-21 is expected to have a significant impact on the market. It’s crucial to keep a close eye on these indicators and factors that may influence market trends to make informed decisions and navigate the market effectively.
