Market Pressure Indicator Reaches Three-Year Low, Signaling Balance
According to BlockBeats, CryptoQuant analyst @AxelAdlerJr reported that the net pressure tilt indicator, which measures the buy-sell pressure ratio of short-term holders, has fallen to the lowest 5% of its three-year distribution. This current level indicates a balance between buyers and sellers.
The net pressure tilt is calculated as the difference between the weighted selling pressure and buying pressure of short-term holders. A positive value indicates higher selling pressure, while a negative value suggests greater buying pressure. The current 24-hour moving average of net pressure is 4.79, with the price at $87,324. The three-year median is 73.17, indicating that growth periods are typically dominated by selling pressure.
The analyst noted that the market is showing a balance in buy-sell pressure among short-term holders. Historically, such balance periods are unstable and tend to shift towards an uptrend during bull markets, followed by a return to selling pressure. However, the current situation is more complex, with prices remaining below the short-term holder's actual price by 13.9% for nearly two months, leading to losses for short-term holders and signaling a bear market phase. If prices fall below $85,000 and net pressure drops below -15, it would indicate a further increase in the extent of the market correction.
