Bitcoin Sees Reduced Selling Pressure as Fed’s FOMC Meeting Yields Rate Cut: CryptoQuant

The Bitcoin market is currently seeing easing pressure after a period of intense selling from investors. The declining pressure is evident in reduced deposits into exchanges and a significant recovery in bitcoin’s (BTC) price over the last three weeks.

Analysts at the research firm CryptoQuant reported that continued low selling pressure could trigger a relief rally in BTC. This uptrend could be supported by the 25 basis points interest rate cut announced by the Federal Reserve during the just-concluded Federal Open Market Committee (FOMC) meeting.

Reduced Selling Pressure

According to CryptoQuant, BTC recovered from $80,000 on November 21 to a monthly high of $94,000 a few days ago. At the time of writing, the asset was trading around $90,000, up 1% weekly.

Bitcoin deposits into exchanges have fallen from 88,000 BTC in mid-November to 21,000 BTC today. The deposits began to decline after the cryptocurrency hit its all-time high of $126,000, as large players reduced their transfers to trading platforms.

Currently, the share of total deposits from large players has plummeted from a 24-hour average high of 47% in mid-November to 21% today. Additionally, the average deposit has decreased by 36%, from 1.1 BTC to 0.7 BTC, over the same timeframe.

Incoming Rally for BTC?

The decline in exchange deposits and downward price pressure also comes as large investors and short-term holders realize their losses. About a month ago, new and old whales realized $646 million in losses, the largest since July. This came as bitcoin’s price first fell below $100,000. Since then, this cohort of investors has realized at least $3.2 billion in losses.

On the other hand, short-term holders have been offloading their assets at a negative profit margin over the last four weeks. The lowest reading sits at -7%, while the Spent Output Profit Ratio (SOPR) hovers below 1.

If the selling pressure stays eased off, BTC could return to the $99,000 level, which is considered the lower band of the Trader On-chain Realized Price range. This level usually marks a resistance during bear cycles, alongside the on-year moving average and the Trader On-chain Realized price, which are $102,000 and $112,000, respectively.

The post Bitcoin Sees Reduced Selling Pressure as Fed’s FOMC Meeting Yields Rate Cut: CryptoQuant appeared first on CryptoPotato.