As Bitcoin, the biggest cryptocurrency asset, continues to display bearish movement today, dropping from about $65,000 to $62,700, sellers appear to have re-entered the market, raising alarms within the sector about potential downward pressure on the worth of BTC. This recent development comes on the heels of sharp price volatility, which has caused uncertainties amongst investors.

Bitcoin Sellers Have Change into Energetic In The Market

In a recent research shared on the leading on-chain data provider platform, CryptoQuant, XBTManager, a crypto trader and on-chain analyst, has cited a possible return of Bitcoin sellers out there. Recent data indicates a possible increase in selling activity following current price fluctuations and crashes, suggesting a change in investor mood.

In response to the on-chain analyst, Bitcoin witnessed a surge last week, emerging from its previous range and going through a period of maximum volatility. He noted that the worth decline implies that Bitcoin may start a free pullback.

Nevertheless, while BTC was facing high volatility, several networks that had been inactive during these events began to turn into energetic once more. Moreover, based on data from the age ranges for 1w-1m spent output, over 33,155 BTC have been moved by short-term holders, which could end in immediate selling pressure from these holders.

Should these age band movements rise, the expert has underscored the importance of additional caution as they will sometimes turn into intense. In consequence, he urged investors to look out for such developments within the upcoming days.

BTC Open Interest Sees Negative Movement 

The value decline has also resulted in a drop in Bitcoin’s Open Interest (OI) across all exchanges. Leading the market intelligence platform, Santiment revealed that on the last day, there was a slight decrease of two.2% in the worth of BTC, which led to a major decline of about 7.5% in the overall open interest on exchanges.

Related Reading: Bitcoin Open Interest Plunges As BTC Crosses $60,000

Meanwhile, there was little drop in overall open interest for altcoins like Ethereum (ETH) and Solana (SOL). Thus, Santiment has identified a number of takeaways to look at out for as BTC’s open interest decreases.

The primary development highlighted by Santiment is a transition of investors’ focus from Bitcoin to altcoins. It’s because, with ETH, SOL, and other notable alts showing significant recovery for the reason that meltdown on August 5, traders could also be seeing more potential in these coins.

One other key takeaway is BTC’s risk reduction. In response to Santiment, traders could also be cutting back on their exposure due to uncertainty. “The shortage of ETH and SOL open interest is more as a result of them having less sensitivity toward BTC’s price than usual this month,” Santiment added.

Other takeaways underlined by the intelligence platform include capital rotation from Bitcoin to altcoins as a result of the slight drop in price and a shift in market sentiment.

Featured image from Unsplash, chart from Tradingview.com