After its ATH above 61k, Bitcoin dropped to 50k in a few days
Even with the Bitcoin market showing signs of bullish exhaustion after registering an upward movement of more than 1,500 percent in the previous 13 months, all is not lost. Investors with a long-term growth outlook still want to keep their main digital asset, repeating their expansive upward stance on it.
The analogy appears on a chart by Glassnode, a blockchain analytics firm that determines Bitcoin’s market bias based on on-chain indicators. One of its reference offers is a tracking tool that studies Bitcoin portfolios based on their net positions. In retrospect, the less wallet owners spend their Bitcoin, the greater their upward trend.
Green Red Green
Lex Moskovski, chief investment officer at Moskovski Capital, identified the aforementioned tool – dubbed Bitcoin Long-Term Holder Net Position Change – and noted that it changed from red to green for the first time since October 2020.
Change in the net position of the long-term Bitcoin holder. Source: Glassnode
The red bars in the chart above reflect the higher volume of transactions in holders’ wallets than for those that allow the cryptocurrency to fit perfectly in their wallets. On the other hand, a green bar shows that more people prefer to keep Bitcoin instead of transferring it to other addresses.
“Sales pressure is easing”, explained the analyst after studying the pattern.
“Considering the face value that this chart means, compared to a month ago, more coins were added to LTH UTXO than the rest. I would say that this is optimistic ”, he added.
Why HODL Bitcoin?
The statements came as the price of Bitcoin struggled to keep up with its previous parabolic move above $ 60,000. The rise in U.S. bond yields has undermined investors’ short-term appetite for safe-haven assets and, in turn, has made a defeated U.S. dollar – a Bitcoin nemesis – a more attractive asset to hold on to.
Bitcoin is traded within an optimistic structure. Source: BTC / USD at TradingView.com
On the other hand, Bitcoin maintained its upward trend, even against a relatively stronger dollar. Its positive signs continued to come in the form of new institutional investments by MicroStrategy, a Nasdaq listed business intelligence company, and the foray of financial giants such as Mastercard, PayPal, Visa, Bank of New York Mellon, Morgan Stanley and Goldman Sachs in the sector cryptocurrency services.
Investors also anticipated growth in the Bitcoin sector after Coinbase, a U.S.-based cryptocurrency exchange, received regulatory approval from the Securities and Exchange Commission to go public through a direct quote from Nasdaq. This secured more exposure for Bitcoin on Wall Street, prompting many analysts to say that the cryptocurrency would rise to $ 100,000 by the end of this year.
Source: NewsBTC
