Leading cryptocurrency Bitcoin experienced a robust rally this week but could not withstand the $50,000 barrier.
Bitcoin rebounded from a week’s low of $43,998 to a high of $50562.11 on Aug. 23, which is the first time since the panicked cryptocurrency sale in mid-May caused panic due to the multi -suppression. Understand the reasons why Bitcoin failed to break the $50,000 barrier.
According to Coinmarketcap, Bitcoin decreased 2.03% in 24 hours. At the moment, bulls are actively defending the 47,000 barrier. Bitcoin was trading at $46911.11 during intraday.
Glassnode’s latest report affirmed that the key Bitcoin level is $53,000. Only when this level is exceeded, the market value of Bitcoin can return to trillions of clubs.
Currently, long-term holders are found in the chain to take a small number of profits, but in general, investors who hold unrealized gains will sell more BTC than those who hold unrealized losses. This means that losing investors are not likely to sell BTC at this stage, but wait until the cost price closes before exiting.
- Reasons why Bitcoin failed to break the $50,000 barrier.
Analysts said this week that long-term investors are mainly focused on Bitcoin traders with extensive experience who have held BTC for six or five months. They will sell even more of their BTC this week and exit the liquidity flow. Most of it is probably because the $50,000 mark isn’t easy to break through and get above the psychological $50,000 mark after a recession that lasted nearly four months. Therefore, it will choose to sell the existing BTC.
The figure above is composed of 6 months to 5 years old currency, which is the expense graph of daily trading volume on total trading volume. This percentage is smoothed using a 14-day moving average. Based on the figure, it’s not hard to figure out that the currency’s average age has been on an uptrend since July, and it’s already gone through this rebound.
The ASOL indicator has increased, meaning that some long-term holders have stopped accumulating coins and realized profits. ASOL stands for AverageSpent Output Lifespan, a metric that shows the average time (in days) spent exiting the transaction.
From historical data, if the indicator peaks for several consecutive weeks, it indicates that there was a lot of sales.
The observations in the chart above also confirm that veterans are selling for profit. So far, the market is absorbing sellers because prices are rising. This shows that there is enough demand to absorb the bitcoins being sold.