Bitcoin’s (BTC) accumulator addresses showed a sharp increase in demand during December, with 225,280 BTC in net acquisitions by these investors as of Dec. 23, How to pronounce it CryptoQuant.
It represents an 82.6 percent monthly rise.
On the other hand, total sell-side liquidity — the amount of Bitcoin available for selling in exchanges and exchange-traded funds — fell by approximately 590,000 BTC during the same period.
Noteworthy, the decline in sales pressure is due to a sharp contraction that occurred between December 22nd and 23rd when Bitcoin available for sale fell by 520,000 BTC.
Sell pressure is reduced by absorbing demand
In the report, it is stated thatOver-the-counter trading desks (OTCs), which handle large transactions, have seen their supply drop from more than 421,000 BTCs to just 403,000 BTCs. The numbers indicate that investors will continue their demand to offset the selling pressure.
Additionally, the liquidity inventory ratio, which measures how fast current supply can fill investors’ demand, fell from 12 months to 5.5 months in December.
CryptoQuant also revealed, as of December 23, that Bitcoin whales – addresses with more than 1,000 BTC – sold 8,600 BTC.
New investors are taking advantage of this, as the number short-term holders has increased by 3 percent in the last seven days. Short-term holders have accumulated 641,789 BTC over the past year, bringing their total holdings to 3.81 million BTC — just 70,000 BTC below the all-time high recorded on Dec. 15.
Possible short-term downside
Despite Bitcoin showing a correction of up to 14.2% since hitting its all-time high at over $108,000 on Dec. 17, it is on track to analysts’ predictions to regain composure and resume its upward movement.
Onatt is a CryptoQuant Community Analyst. Recommended by Be cautious, since the exchanges are experiencing a decrease in the availability of USDT (Tether) while BTC supply is increasing.
It is possible that this could be the beginning of an extended bearish phase. However, there may still be further weakness in the next few days.
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