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Bitcoin outflow has reached its highest level in 6 months, in a new threat to the price of bitcoin

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bitcoin (BTC) is entering a “low-risk bottom” area as sellers finally accept FTX losses.

The data is from the on-chain analytics company glass It shows that seller exhaustion has reached ideal levels for the Bitcoin price rally.

Bitcoin sellers are experiencing low volatility in the price of Bitcoin

Almost a month after FTX’s implosion began, Bitcoin investors gave up and either sold at a loss or kept piling on. Unrealized losses.

As Cointelegraph mentionedThese losses became significant just days after the event, keeping more than 50% of the bitcoin supply in the red.

Now, another on-chain metric paints a potentially more optimistic picture when it comes to losing BTC investments.

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The seller exhaustion constant, which measures the relationship between supply in profit and 30-day volatility, replicates the behavior as of June this year.

Originally created by ARK Invest and David Puell, who is responsible for Puell Multiple, the seller exhaustion constant indicates that when volatility is low but losses are high, Bitcoin is unlikely to go down.

“Specifically, the combination of low volatility and high losses correlates with surrender, complacency, and a decline in the Bitcoin price,” ARK explained about the metric in a research piece.Bitcoin valuation frameworkin 2021.

This situation mirrors the status quo, and if the June price action repeats itself, a rally in BTC/USD should be set.

In its own description, Glassnode describes conditions such as “low-risk bottoms.”

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Static chart of bitcoin seller exhaustion. Source: Glassnode

Bitcoin miners are in pain

However, there are still obstacles to the relief drive, which is beginning to bear fruit.

Related: Encryption and surrender – is there a silver lining? Watch the market talks on Cointelegraph

Bitcoin miners are afraid to enter a range A new wave of surrenderBitcoin reserves sales increased, data confirms.

facing a perfect storm From the record hash rate and fading profit margins, miners have signaled that disruptions are coming, as the fundamentals of the Bitcoin network are now beginning to adjust to reflect this.

William Clemente, co-founder of cryptographic research firm Reflexivity Research, says: warned This week, referring to the popular retail strips A metric used to monitor the profitability of a mine.

“Hash tapes have just started a bearish cross, and this has historically been a major sign of capitulation for miners.”
Bitcoin Hash Ribbons Chart. Source: William Clemente / Twitter

Glassnode’s miner multiflow, which measures BTC outflows from mining wallets relative to a one-year moving average, is now at a six-month high.

At 1.073, the multiplier – as with seller exhaustion – nonetheless echoes the June BTC macro price low.

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Multiple bitcoin miner flow chart. Source: Glassnode

The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.