6 hour ago
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Axel Reports Supply Overhang Continues to Crash Bitcoin, Ethereum, Solana Prices
Crypto prices for Bitcoin, Ethereum, and Solana continue to decline. Key reasons include:
- Anomalous exchange inflows triggered the BTC breakdown below $90,000, with sellers preparing in advance.
- The short-term holders' SOPR now acts as resistance, suggesting further potential declines.
- Between January 20 and 21, nearly 17,000 BTC moved into exchanges, correlating with a price drop to $87,000.
- A persistent supply overhang could lead to more price decreases for Bitcoin, Ethereum, and Solana.
- A reversal signal may occur if netflow turns negative amid rising prices, indicating a cleared overhang.
- Current selling pressure from short-term holders occurs as they attempt to sell at breakeven.
Regarding future price movements:
- A Bitcoin rally above $100,000 is unlikely due to the existing supply overhang.
- The unresolved supply overhang limits attempts to surpass the $98,400 cost basis and $100,000 level.
- A sustained increase in demand is essential for a breakout above $100,000.
