BUY/SELL PRESSURE IN MID-NOV CRASH

looking at the buyers/sellers conviction and study the long-term trend

Onchian Volume Profile Analysis

In the last 90 days, the market has risen from 39.8 K to a new ATH of 69 K. Since hitting the new ATH, the market has been experiencing a drop to 50-60 K range, which makes it crucial to see the buy/sell range using the UTXO Change Histogram.

The UTXO Change Histogram is a vital instrument that can track the current UTXO set (blue/pink bars) and UTXO set snapshot taken 90 days before (blue/purple bars). In other words, the blue bars are the UTXOs that have been intact in the last 90 days. The pink/purple bars are the UTXOs that have been created/spent over the previous 90 days.

The first interesting takeaway from this chart is that almost 82% of all new UTXOs were created in the 57K-69K range (buy pressure); since 30 days ago! Therefore, these buyers have rushed into the market after the price broke above 60K. This kind of buy pattern is more likely attributed to newcomers known to have a weak conviction.

The current UTXO Histogram is also a valuable tool to estimate the potential support levels if sell pressure rises in the coming days. The most substantial immediate support levels based on this chart are 53.5K and 57K. It is essential to mention that onchain support/resistance levels act as a magnetic level, meaning that price can fluctuate in a small range around them without invalidating.

Long-Term Holders Behaviour

Tracing the Long-Term Holders profit ratio, LTH-SOPR, it is evident that the long-term holders are beginning to distribute. However, the current intensity of profit realization by LTH (2-3 X) has not reached the concerning range (3-10X) that frequently occurred near the market’s top.

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Data is provided through @tsypruyan API