Bitcoin (BTC) speculators panic sold as the BTC price corrected toward $40,000, the latest on-chain data suggests.

Figures from on-chain analytics firm Glassnode show short-term holders (STHs) offloading more than $2 billion in BTC on Dec. 12 alone.

Bitcoin short-term holders set 18-month selling record

Bitcoin saw its biggest single-day drop of 2023 this week — one which at one point totaled 8.1%, data from Cointelegraph Markets Pro and TradingView confirms.

BTC/USD 1-week chart. Source: TradingView

Reacting, the more speculative subsection of the Bitcoin investor base followed in step, reducing their exposure in what appears to be a bout of cold feet on the market outlook.

Glassnode reveals that STHs, which constitute entities holding BTC for 155 days or less, sent $1.93 billion worth of coins to exchanges on Dec. 11, followed by another $2.08 billion the day after.

Both days mark long-term highs in terms of STH selling pressure, with entities both in profit and loss joining the trend.

The last time single-day selling passed the $2 billion mark was in June 2022 — a reaction to the impending collapse of blockchain firm Celsius.

In a post on X (formerly Twitter) on Dec. 12, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, noted the significance of the week’s STH movements.

“$2B in total, with $1.1B in loss,” part of his commentary stated.

“That is for anyone who bought between Dec. 6 and Dec. 13, most likely retail, after seeing Bitcoin up 150% YTD.”

Bitcoin short-term holder (STH) transfers to exchanges in USD. Source: Glassnode

In BTC terms, volumes were less sizable, with the Dec. 12 tally marking the largest since the start of July. At the time, BTC/USD was fresh from a rebound above the $30,000 mark after dipping to $25,000.

Bitcoin short-term holder (STH) transfers to exchanges in BTC. Source: Glassnode

Mayer Multiple shows classic resistance looms

Continuing, Glassnode flagged multiple on-chain indicators suggesting that STHs may have had their fill of the bull mark for the time being.

Related: ‘Take some rest and GO’ — Bitcoin price copies 2020 bull run fractal

Profit-taking around this month’s 19-month highs near $45,000 was “meaningful,” researchers said, adding that “potential saturation of demand (exhaustion) may be in play.”

“After such a powerful 2023 thus far, this rally in particular seems to have met resistance, with on-chain data suggesting STHs are a key driver,” they wrote in part of a conclusion to the firm’s latest weekly newsletter, “The Week On-Chain,” released Dec. 12.

Among the indicators featured was the Mayer Multiple, which describes the relationship between the current spot price and its 200-week moving average.

The multiple is fast coming up to 1.5 — an area which, while not overbought, has acted as bull market resistance during Bitcoin’s history. 

“The present value of the Mayer Multiple indicator is at 1.47, close to the ~1.5 level which often forms a level of resistance in prior cycles, including the Nov 2021 ATH,” Glassnode explained.

“Perhaps as an indicator for the severity of the 2021-22 bear market, it has been 33.5-months since this level was breached, the longest period since the 2013-16 bear.”

Bitcoin Mayer Multiple annotated chart (screenshot). Source: Glassnode

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