Bitcoin’s (BTC) market depth on Coinbase has recently shown an imbalance between bids and asks, with a higher number of bids. According to Coinbase analysts David Duong and David Han, this increase in total Bitcoin sell orders is particularly concentrated within 5% to 10% of the mid-price on the exchange, which is limiting a greater price upswing.
“The data suggests that we may be seeing some profit-taking at current levels and/or a greater willingness by market participants to sell into price appreciation, which may limit price moves to the upside,” the Coinbase analysts said in a report released on Friday.
Duong and Han pointed to Arkham Intelligence data, highlighting a specific factor driving recent Bitcoin sell-side pressure. “Mt. Gox repayments remain a source of pressure, following the distribution of around 50,000 Bitcoin to exchanges since July 5, leaving the trustee with a balance of 90,300 Bitcoin,” they said.
However, they noted that Bitcoin is finding some relief from a shift in the U.S. political landscape. “This has allowed the token to catch up to the sharp U.S. dollar devaluation in July, with the multilateral DXY index down over 2% month-to-date. Bitcoin is often valued in U.S. dollars, so it tends to benefit from a weaker U.S. dollar,” they said.
This analysis suggests that while Bitcoin is experiencing some positive price momentum, the substantial sell-side pressure and profit-taking behavior could limit further gains in the near term.