Bitcoin [BTC] to be haunted by the bears in 2023? Yes, say these metrics

New data suggests that Bitcoin holders have started selling their BTC at a loss Whales started to lose interest as selling pressure grew, however, traders remained optimistic

According to 2 January 2023 tweet, the majority of Bitcoin [BTC] holders have started to lose faith in the king coin. Reportedly, the net realized losses for Bitcoin are similar to that of historic BTC bottoms.

Capitulation, represented by net realized losses adjusted for market cap, is on-par with any prior macro Bitcoin bottom. Major pain is being felt in this market. pic.twitter.com/adzpCYau40

— Will Clemente (@WClementeIII) January 2, 2023

Taking a loss

Based on information gathered by Glassnode, the number of addresses holding over 1,000 Bitcoin decreased. At the time of writing, the number of addresses holding more than 1,000 coins reached a three-year low. Along with declining interest from large addresses, the overall number of transactions on the Bitcoin network reduced as well.

The data revealed that the median transaction volume for Bitcoin reduced to $266.99 and reached a two-year low at press time.

???? #Bitcoin $BTC Median Transaction Volume (change-adjusted) (7d MA) just reached a 2-year low of $266.99

View metric:https://t.co/k2Un2H1Y3v pic.twitter.com/85fX1nDGL2

— glassnode alerts (@glassnodealerts) January 2, 2023

It appeared that BTC’s bearish sentiment would continue to stay in the market for a while. In addition to the aforementioned information, data from Santiment revealed that Bitcoin was still undervalued at the time of writing.

According to Santiment’s recent tweet, Bitcoin’s Network Value to Transactions (NVT) suggested that BTC still required some increased network utility to justify current market caps.

???? According to @santimentfeed's #NVT price prediction model, #Bitcoin & #Ethereum still require some increased network utility to justify current market caps. The circulation rate of both networks need to pick up in 2023, and this week will be telling as non-holiday days begin. pic.twitter.com/yZDVeQAnBt

— Santiment (@santimentfeed) January 3, 2023

Growing reservations for BTC

While Bitcoin remained overvalued, the selling pressure on BTC holders continued to grow.

This was indicated by the increase in the exchange reserve for Bitcoin, which increased by 0.42% in the last seven days. A growing exchange reserve implied higher selling pressure on Bitcoin holders.

This selling pressure impacted Bitcoin miners materially during this period. According to data from CryptoQuant, the Miner Position Index (MPI) suggested that miners were observed to be moderately selling their mined Bitcoin.

Source: Crypto Quant

Despite these bearish factors, traders remained optimistic about the future of Bitcoin.

Based on data provided by Coinglass, most top traders held long positions in favor of Bitcoin. During press time, 64.7% of overall traders had gone long on BTC.

Source: coinglass

It remains to be seen if the lack of confidence in BTC is warranted. At the time of writing, Bitcoin was trading at $16,710.12.

Its price fell by 2.5% in the last 30 days. Despite its declining prices, Bitcoin’s market cap dominance increased by 4.41% in the same period.

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