Sunday has been a rollercoaster for bitcoin prices, with the top crypto asset dipping to a low of $92,941 per coin. The whole crypto market took a hit, dropping by 1.61%, while BTC itself lost 1.42% in the last 24 hours.
Cryptoquant Data Shows Bitcoin’s Sell-Side Liquidity Plunged to 6.6 Months
Bitcoin hit a low of $92,941 by 5:30 p.m. ET on Sunday, and after the drop, it attempted to bounce back above $93,000 per coin. The day before, at 5 p.m. ET on Saturday, BTC was floating comfortably above $95,000, precisely at $95,529 per unit. With the holidays, BTC’s trading volume has been somewhat quiet, clocking in at $26.18 billion in the last day. On the 1-day BTC/USD chart, key oscillators like the relative strength index (RSI) at 43, Stochastic at 14, and the average directional index at 26 are all chilling in neutral territory.
BTC/USD 1D on Dec. 29.
Looking at the moving averages (MAs) on the daily chart, the simple moving averages (SMAs) and exponential moving averages (EMAs) from 10 to 50 days are flashing bearish signs. However, all the longer-term MAs are still sending out bullish vibes. Trading volume has been on the low side, and the holiday week has seen more sellers than buyers, likely keeping prices in this dip and consolidated range until the new year.
BTC/USD 4H on Dec. 29.
Cryptoquant.com data shows that the Coinbase premium gap is currently negative $169.18, signaling lukewarm U.S. interest, possibly due to the holiday lull. Over in South Korea, the infamous ‘Kimchi premium’ persists but has decreased from last week’s 3.38% premium on Dec. 25 to a current 1.3%.
Fascinating data shared by Cryptoquant‘s head of research Julio Moreno, indicates that it’s clear that bitcoin’s sell-side liquidity is on the decline. Moreno’s data reveals that the Liquidity Inventory Ratio dropped from 41 months in October to just 6.6 months, aligning with market rallies in Q1 and Q4 2024, suggesting that selling pressure might soon ease up.
This weekend, tether (USDT) leads as bitcoin’s top trading pair, followed by the U.S. dollar, FDUSD, USDC, and the Korean won. The won makes up 2.09% of all bitcoin trades this weekend. The entire crypto market is currently valued at $3.27 trillion, down 1.61% from yesterday. While BTC lost 1.42% against the dollar, other major coins took bigger hits: XRP dropped over 3%, BNB fell 4.27%, and DOGE dipped 2.25%. FARTCOIN was the day’s biggest loser, plummeting by 15.27%.
Bitget’s BGB token decreased by 12.62%, and the newly minted PENGU dropped 10.90%. On the brighter side, Phala Network (PHA) was the day’s star, gaining 18.26%. Oddly enough, FTX Token (FTT), linked to the now-defunct FTX exchange, jumped by 12.77% against the U.S. dollar. In the derivatives market, the downturn led to $126.39 million in liquidations, with $90.64 million coming from long positions on Sunday.
