Cryptographic researcher Axel has developed Bitcoin, Ethereum, and solana price It's still crashing. This comes as BTC remains in oversupply, threatening to put further downward pressure on crypto prices.
Why Bitcoin, Ethereum and Solana prices are still plummeting
in research reportAxel pointed out that the abnormal forex inflows were accompanied by a breakdown of BTC below the $90,000 zone, as sellers had been preparing for it in advance. The market remains at risk of further selling pressure as it reaches the 1.0 level. SOPR for short-term holders It is currently acting as resistance rather than support. Therefore, the prices of Bitcoin, Ethereum, and Solana may fall further.
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Axel further commented on the net flow of Bitcoin into exchanges, noting that almost 17,000 Bitcoins were injected between January 20th and 21st. BTC flows into exchangesat the same time that BTC fell to $87,000, the prices of Ethereum and Solana also fell. Cryptocurrency researchers explained that these unusual highs followed a period earlier this month when net flows were mainly negative.
Regarding the decline in Bitcoin prices, Axel said that such a spike is more likely to reflect supply reserves than neutral transfers. In other words, the breakdown below $90,000 appears to be structural rather than emotional. meanwhile, Bitcoin net flow Although it returned to neutral levels yesterday, the accumulation of inflows still creates a supply overhang that could cause Bitcoin, Ethereum, and Solana prices to fall further.
Axel said a sign of improvement would be if net flows turned negative again amid rising prices, which could indicate that the overhang has been resolved. However, with the 7-day SMA SOPR for short-term holders below 0.996, crypto researchers suggested that BTC faces increasing selling pressure on every recovery as these holders look to sell at breakeven. He added that a reversal trigger could be confirmed if SOPR breaks above 1.0 from below, and the 7-day SMA will remain consistent for 3-5 days to eliminate false spikes after a decline.
Why is it unlikely to exceed $100,000 for now?
Latest research reporton-chain analytics platform Glassnode explained: Bitcoin rises above $100,000 For now, that seems unlikely as oversupply continues. They noted that this overhanging supply above $98,000 remains a dominant selling force limiting any short-to-medium-term rebound.
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Alluding to the unused realized price distribution metric, Glassnode said: Recent BTC Rise partially closed the previous air gap between $93,000 and $98,000 through redistribution from top buyers to new market participants.
However, we expect that unresolved supply overhangs will likely limit attempts to break above the $98,400 and $100,000 levels on a cost basis for short-term holders. A clean breakout above $100,000 is said to require a meaningful and sustained acceleration in demand momentum.
Featured image from iStock, chart from Tradingview.com
