BTC has dumped from it's support at 42k, but is this a problem and who is selling?
Coins are maturing at a parabolic rate (1 year +) showing it is not old hands.
Spending has increased significantly for coins between 0-3 months old.
People tend to exit at break even or slight losses when they get scared so most likely coins were picked up around beginning of Dec, Jan and in the last few weeks and people have either got frustrated or are scared of loosing out so have sold their positions.
There was a significant sell off of old coins into the rally but this took place in the first week of Feb so has not caused this downside.
Futures interest has increased and also starting leaning towards a + funding rate. We have seen liquidations in the last 48H of longs so a slight long squeeze could also be in play.
Takeaway:
I am not worried and have made no changes to holdings. If it corrects further I will add to my positions and am also will add if we break up and have another pullback. This is a shakeout and no real players are making an exit, yet.
Coins are maturing at a parabolic rate (1 year +) showing it is not old hands.
Spending has increased significantly for coins between 0-3 months old.
People tend to exit at break even or slight losses when they get scared so most likely coins were picked up around beginning of Dec, Jan and in the last few weeks and people have either got frustrated or are scared of loosing out so have sold their positions.
There was a significant sell off of old coins into the rally but this took place in the first week of Feb so has not caused this downside.
Futures interest has increased and also starting leaning towards a + funding rate. We have seen liquidations in the last 48H of longs so a slight long squeeze could also be in play.
Takeaway:
I am not worried and have made no changes to holdings. If it corrects further I will add to my positions and am also will add if we break up and have another pullback. This is a shakeout and no real players are making an exit, yet.