After a week of climbing, Bitcoin‘s (BTC) price movement has shown a marginal decline in the past 24 hours, slowing its momentum. This comes at a time when a key metric has seen a sharp increase, suggesting potential further price drops in the coming days. The leading cryptocurrency made a promising start to the new year with over a 6% increase in the last seven days, but recent marginal losses have put a halt to the gains frenzy. At the time of writing, BTC trades at $45,161.20 with a market value exceeding $884 billion, having experienced a 0.11% decrease in the last 24 hours according to CoinMarketCap.
Meanwhile, a significant BTC metric has been recording consistent increases. A popular crypto analyst, Ali, recently highlighted in a tweet the rise in Bitcoin’s open positions. While the increase in open positions indicates more BTC trading activity, it could also signal market volatility. Some analysts had previously reported that the number of BTC investors at a loss exceeded those in profit, raising alarms. Data from CryptoQuant shows that as exchange reserves increase, so does the selling pressure on BTC.
The Supply of Profitable Offers (SORP) for the cryptocurrency was declining, which could mean more investors were selling their assets for a profit. During a bull market, this scenario could often indicate that the market has reached its peak. Furthermore, Bitcoin’s Net Unrealized Profit and Loss (NULP) suggested that investors were in a “belief” stage with high unrealized profits. However, a different perspective from Santiment data revealed that while BTC’s supply on exchanges continued to decrease, its off-exchange supply increased, indicating high buying pressure on the cryptocurrency. Positive sentiment towards BTC was also high, reflecting investors’ confidence in the king of cryptos.