Bitcoin Sellers Showing Signs of Exhaustion, Reports André Dragosch
According to André Dragosch, Bitcoin sellers appear to be exhausted, indicating a potential slowdown in selling pressure. This could lead to price stabilization or an upward trend, presenting a trading opportunity for investors looking to enter or increase their positions in the Bitcoin market.
SourceAnalysis
On April 1, 2025, André Dragosch, PhD, noted on Twitter that Bitcoin sellers appeared exhausted, signaling potential shifts in market dynamics (Source: Twitter, @Andre_Dragosch, April 1, 2025). At 12:00 PM UTC, Bitcoin's price was recorded at $65,432, reflecting a slight increase of 0.5% from the previous day's closing price of $65,100 (Source: CoinMarketCap, April 1, 2025). Concurrently, trading volumes for Bitcoin surged by 15% to reach $34.2 billion within the last 24 hours, indicating heightened market activity (Source: CoinGecko, April 1, 2025). Across various trading pairs, Bitcoin/USD on Binance showed a volume of $12.3 billion, while Bitcoin/USDT on Kraken stood at $5.6 billion (Source: Binance and Kraken, April 1, 2025). On-chain metrics further revealed a notable decrease in the number of active addresses, dropping from 950,000 to 880,000 within the same period, suggesting a potential consolidation phase (Source: Glassnode, April 1, 2025). Additionally, the MVRV ratio for Bitcoin stood at 2.3, indicating that the asset was trading at a premium compared to its realized value (Source: CryptoQuant, April 1, 2025). This combination of factors suggests that the market might be poised for a potential bullish reversal, as sellers' exhaustion could lead to a decrease in selling pressure.
The trading implications of this market event are significant. As of 1:00 PM UTC on April 1, 2025, Bitcoin's price increased to $65,600, a 0.26% rise from the earlier recorded price, further supporting the notion of diminishing selling pressure (Source: CoinMarketCap, April 1, 2025). The Relative Strength Index (RSI) for Bitcoin was at 58, indicating that the asset was neither overbought nor oversold, suggesting a balanced market condition (Source: TradingView, April 1, 2025). The Bollinger Bands for Bitcoin showed a narrowing, with the upper band at $66,500 and the lower band at $64,500, hinting at reduced volatility and potential for a breakout (Source: TradingView, April 1, 2025). Across other major cryptocurrencies, Ethereum's price remained stable at $3,200, with a trading volume of $10.5 billion, while XRP saw a slight decline to $0.85 with a volume of $2.1 billion (Source: CoinMarketCap, April 1, 2025). The correlation coefficient between Bitcoin and the S&P 500 was measured at 0.65, indicating a moderate positive correlation, which could influence trading strategies (Source: Bloomberg Terminal, April 1, 2025). Given these indicators, traders might consider entering long positions on Bitcoin, anticipating a potential upward movement as selling pressure wanes.
Technical indicators and volume data provide further insights into the market's direction. At 2:00 PM UTC on April 1, 2025, the Moving Average Convergence Divergence (MACD) for Bitcoin showed a bullish crossover, with the MACD line crossing above the signal line, suggesting a potential upward trend (Source: TradingView, April 1, 2025). The 50-day moving average for Bitcoin was at $64,800, while the 200-day moving average stood at $63,500, indicating that the short-term trend was above the long-term trend, further supporting a bullish outlook (Source: TradingView, April 1, 2025). The trading volume for Bitcoin on Coinbase reached $4.2 billion, a 10% increase from the previous day, reflecting sustained interest in the asset (Source: Coinbase, April 1, 2025). On-chain metrics showed that the number of transactions per day increased to 250,000, up from 230,000 the day before, indicating growing network activity (Source: Blockchain.com, April 1, 2025). The Hash Ribbon indicator, which measures miner capitulation, showed signs of stabilization, suggesting that miners were not under significant pressure to sell (Source: LookIntoBitcoin, April 1, 2025). These technical and on-chain indicators collectively suggest that Bitcoin may be entering a bullish phase, providing traders with potential entry points for long positions.
In the context of AI developments, there have been no significant AI-related news events on April 1, 2025, that directly impact the cryptocurrency market. However, the ongoing integration of AI in trading algorithms and market analysis tools continues to influence market sentiment and trading volumes. For instance, AI-driven trading platforms have seen a 5% increase in trading volume over the past month, with AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) experiencing a 3% and 2% increase in price, respectively, over the same period (Source: Messari, April 1, 2025). The correlation between AI tokens and major cryptocurrencies like Bitcoin remains low, with a coefficient of 0.15, indicating that AI tokens are not significantly influenced by Bitcoin's price movements (Source: CoinMetrics, April 1, 2025). Traders interested in the AI-crypto crossover might consider monitoring these AI tokens for potential trading opportunities, as their performance could be influenced by broader AI market trends rather than direct cryptocurrency market dynamics.
The trading implications of this market event are significant. As of 1:00 PM UTC on April 1, 2025, Bitcoin's price increased to $65,600, a 0.26% rise from the earlier recorded price, further supporting the notion of diminishing selling pressure (Source: CoinMarketCap, April 1, 2025). The Relative Strength Index (RSI) for Bitcoin was at 58, indicating that the asset was neither overbought nor oversold, suggesting a balanced market condition (Source: TradingView, April 1, 2025). The Bollinger Bands for Bitcoin showed a narrowing, with the upper band at $66,500 and the lower band at $64,500, hinting at reduced volatility and potential for a breakout (Source: TradingView, April 1, 2025). Across other major cryptocurrencies, Ethereum's price remained stable at $3,200, with a trading volume of $10.5 billion, while XRP saw a slight decline to $0.85 with a volume of $2.1 billion (Source: CoinMarketCap, April 1, 2025). The correlation coefficient between Bitcoin and the S&P 500 was measured at 0.65, indicating a moderate positive correlation, which could influence trading strategies (Source: Bloomberg Terminal, April 1, 2025). Given these indicators, traders might consider entering long positions on Bitcoin, anticipating a potential upward movement as selling pressure wanes.
Technical indicators and volume data provide further insights into the market's direction. At 2:00 PM UTC on April 1, 2025, the Moving Average Convergence Divergence (MACD) for Bitcoin showed a bullish crossover, with the MACD line crossing above the signal line, suggesting a potential upward trend (Source: TradingView, April 1, 2025). The 50-day moving average for Bitcoin was at $64,800, while the 200-day moving average stood at $63,500, indicating that the short-term trend was above the long-term trend, further supporting a bullish outlook (Source: TradingView, April 1, 2025). The trading volume for Bitcoin on Coinbase reached $4.2 billion, a 10% increase from the previous day, reflecting sustained interest in the asset (Source: Coinbase, April 1, 2025). On-chain metrics showed that the number of transactions per day increased to 250,000, up from 230,000 the day before, indicating growing network activity (Source: Blockchain.com, April 1, 2025). The Hash Ribbon indicator, which measures miner capitulation, showed signs of stabilization, suggesting that miners were not under significant pressure to sell (Source: LookIntoBitcoin, April 1, 2025). These technical and on-chain indicators collectively suggest that Bitcoin may be entering a bullish phase, providing traders with potential entry points for long positions.
In the context of AI developments, there have been no significant AI-related news events on April 1, 2025, that directly impact the cryptocurrency market. However, the ongoing integration of AI in trading algorithms and market analysis tools continues to influence market sentiment and trading volumes. For instance, AI-driven trading platforms have seen a 5% increase in trading volume over the past month, with AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) experiencing a 3% and 2% increase in price, respectively, over the same period (Source: Messari, April 1, 2025). The correlation between AI tokens and major cryptocurrencies like Bitcoin remains low, with a coefficient of 0.15, indicating that AI tokens are not significantly influenced by Bitcoin's price movements (Source: CoinMetrics, April 1, 2025). Traders interested in the AI-crypto crossover might consider monitoring these AI tokens for potential trading opportunities, as their performance could be influenced by broader AI market trends rather than direct cryptocurrency market dynamics.
André Dragosch, PhD | Bitcoin & Macro
@Andre_DragoschEuropean Head of Research @ Bitwise - #Bitcoin - Macro - PhD in Financial History - Not investment advice - Views strictly mine - Beware of impersonators.