BlackRock Risks Pushing Bitcoin Lower After This Move

BlackRock may have just delivered yet another blow to the crypto bulls, dampening recovery hopes. The company has reportedly executed another tranche of selloffs for both Bitcoin and ETH ETFs.

BlackRock reportedly sold 6,735 BTC worth over $616 million in the last 24 hours. This selloff raised concerns of more downside risk even after its recent free-fall.

In a Bitcoin news update, the company reportedly channeled the recent outflows into Coinbase Prime. BlackRock was one of the ETFs aggressively accumulating BTC through its ETF a few months ago.

While its demand previously aided the bulls, this latest wave of selloff may put more downward pressure on Bitcoin and Ethereum.

Although BlackRock sold off a substantial amount of BTC, it was only about 0.85% of the company’s total holdings which were over 788,000 BTC. In other words, BlackRock maintained supremacy in terms of BTC holdings.

Nevertheless, BlackRock outflows represented the latest wave of bearish Bitcoin news and reflected the current state of the market characterized by crushed demand.

Bitcoin (BTC USD) Chart Erases its 12-Month Gains

If you bought Bitcoin about 12 months ago, then your holdings would be worth roughly the same. This is despite the fact that Bitcoin experienced new all-time highs this year.

Bitcoin’s 12-month chart was down by almost 2% in the last 24 hours courtesy of its sharp retracement in the last 7 days. ETH price was down by over 7% during the same time frame.

The above chart revealed that Bitcoin price at press time was further away from its ATH, than it was at its lowest price in the last 12 months.

This also underscored the rapid pace of sell pressure that has taken place, bearing in mind that it achieved its ATH less than 2 months ago.

This latest downside also validated the long-term holder outflows observed over the last few months.

Those outflows, combined with the increasing sell pressure from the likes of BlackRock paint a clear picture of the intense wave of sell pressure in the market.

Moreover, BTC price recently dipped into oversold territory and demand has basically been non-existent.

The last time Bitcoin price dipped below its 12-month breakeven price level, it hovered below there for a while.

Surprisingly, BTC demand remained relatively weak contrary to expectations.  An outcome that is mostly synonymous with Bitcoin price characteristics during the bear market.

Retail Panic Selling Perpetuates the Bitcoin Bear Reign

Bitcoin short-term holder SOPR indicator confirmed that short term holders have been aggressively offloading their coins.

Moreover, the indicator recently dropped to 0.97%, meaning most short-term holders have been selling at a loss.

This last time that the same ratio was below 1% was between February and May. In short, the latest bearish wave has been shaking out the weak hands from the market.

A short-term holder ratio below 11 historically signals that the bottom of the trend may be nearby. In this case, BTC price may be facing sell pressure but it may be bearing a local bottom.

Weak or absent demand at recent levels suggests a high probability that Bitcoin could extend its downside below $90,000.

Such an outcome will push the cryptocurrency deeper into oversold territory, where investors should be on the lookout for demand resurgence.