Bitcoin has recently experienced mixed market movements and analysts are watching it closely Supervision On-chain data to understand the short-term trajectory of the leading digital currency.
On-chain metrics show a significant shift in exchange activity, with Tether (USDT) seeing significant outflows while Bitcoin (BTC) inflows to exchanges remain high. This trend indicates a potential “imbalance”. Market dynamicswhere selling pressure can lead to further price corrections in the short term.
Spot market trends and potential bearish selling pressure signal
According to data shared by CryptoQuant analyst Onatt, more than 15,000 bitcoins have been seen moving on exchanges, a metric that is usually associated with an increased likelihood of a selloff. At the same time, the outflow of Tether means a decrease in liquidity on these exchanges.
Tether outflows and Bitcoin inflows are signs of short-term weakness
Significant amounts of Tether (USDT) are leaving exchanges and a large flow of Bitcoin (BTC) (over 15K) has been seen entering exchanges. – by @tutunculeronat
link
https://t.co/NFCLi7EpiI pic.twitter.com/6lUyTiEdNi
– CryptoQuant.com (@cryptoquant_com) December 24, 2024
Historically, such moves have been associated with short-term declines in prices as traders and institutional investors center their portfolios. Market fluctuations.
However, Onat noted that while these indicators suggest short-term downside risk, there appears to be no significant macroeconomic catalyst to trigger a longer-term downside trend. This analyst specifically wrote:
This combination of factors may indicate the potential for further short-term downside in the price of Bitcoin. However, from a macroeconomic perspective, there does not appear to be a catalyst that would prompt a long-term downward trend after this short-term correction.
Key indicators suggest mixed signals in the Bitcoin market
Another analyst, TraderOasis, highlighted other metrics that influence Bitcoin's price behavior. One key observation focused on the Coinbase Premium Index, which failed to follow The upward movement of Bitcoin In its latest price hike, Oasis noted:
As a result, the price retreated. We are now in negative territory. I expect the market to take a break to continue the uptrend.
Notably, this disconnection indicates a strong lack shopping activity from US-based investors, which is often seen as an important driver of Bitcoin's upward movement. The analyst also noted that while open interest levels are rising, financing rates are beginning to decline.
A decrease in funding rates combined with an increase in open interest usually indicates that traders are opening more short positions. This pattern shows bearish sentiments derivative markettraders expect a continuation of the downtrend or, at best, a period of sideways movement.
Furthermore, the combination of declining funding rates and rising open interest suggests that the market could remain in a consolidation phase for some time. TraderOasis wrote:
I think the price will change due to Christmas week. Then the distribution movement will begin.
Featured image created with DALL-E, chart from TradingView
