“As prices rally towards $66,000, the volume of losses made by LTH increases! Buyers at the top of the cycle are using the relief rally as an exit opportunity, locking in losses with a lower margin at the lows allowed below 60,000. Selling hard rather than waiting for recovery is a pattern consistent with exhausted conviction among underwater long-term holders,” the analyst added.
“Adding to the selling pressure from the realization of LTH losses, short-term holders who bought near recent lows are now taking profits on volumes last seen near the peak in May,” the analyst added.
$BTC rebounded this week to nearly $65,000 from $61,500, with most of the gains coming Tuesday after U.S. consumer price inflation became weaker than expected. The headline CPI rose just 3.5% year-over-year in June, missing the consensus forecast of 3.8% and marking a notable slowdown from previous months. Core CPI, excluding food and energy, stood at 2.6% year-on-year, with a stable reading month-on-month.
The June producer price index, providing clues to ongoing inflation, also came in below expectations. Both reports eased fears of an interest rate hike from the Federal Reserve, sending the dollar index lower, down half a percent to 100.48 this week. Treasury yields also fell.