Bitcoin (Bitcoin) Prices remained relatively stable over the weekend, approaching $34,000 on July 11. Despite this, BTC/USD has fallen by nearly 50% from its all-time high in mid-April to close to $65,000. But the massive downtrend has not stopped investors from betting on the long-term bullish prospects of digital assets.
According to one of the Glassnode indicators, called Vibrant, The Bitcoin market has noticed a shift in long-term investors’ “macro holding behavior”. Hodling represents the ritualized reaction of cryptocurrency investors to the downward trend of the market. Memetic-driven investment strategy Derived from 2013 drunken forum posts and typos.
At the same time, activity is the ratio of the accumulated days of burning coins to the number of days accumulated by the network. It varies between 0 and 1, and zero represents the highest proportion of dormant Bitcoin supply, which is the HODLing behavior. This indicates that the accumulation of global coin days has surpassed the number of coin days destroyed in on-chain activities.
Nevertheless, a higher degree of distribution does not necessarily indicate a bearish cycle. For example, between November 2020 and April 2021, the activity ratio increased with the increase in the price of Bitcoin, which indicates that despite the reduction in holding behavior, the Bitcoin market has not entered a bearish phase.
This may be due to the surge in trade volume at the beginning of this year. According to data obtained from Bitcoinity, Bitcoin trading activity in the first quarter soared to more than US$6 trillion in general, compared with US$1.14 trillion in the fourth quarter of 2020.
Therefore, although long-term holders started to consume their Bitcoin between November 2020 and April 2021, the trading volume of all cryptocurrency exchanges is increasing, which shows that retail demand has absorbed selling pressure. But in April, as analyst Willy Woo pointed out, the selling exceeded the normal bullish buying pressure.
Speculative participants began to sell their new coins to long-term holder Woo Wrote in the newsletter It was released on July 2 with reference to the so-called “Rick Astley” chart, which studies the flow of Bitcoin between strong and weak hands. extract:
“It is clear that long-term holders are clearing speculative tokens at a strong rate. Now it is waiting for the game until this is reflected in the price movement and the data confidently points to the formation of the accumulation bottom.”
Bitcoin holds 30,000 USD
A spike Bitcoin accumulation sense As the cryptocurrency continues to maintain its bullish bias, above the strong $30,000 support level.
During the entire cryptocurrency market crash, the BTC/USD exchange fell to the level of $30,000 for the first time on May 19. Since then, the pair has tested the price bottom line at least four times before witnessing a strong upward rebound.Which makes The psychological support level of $30,000, If the downside risk is broken, the price of Bitcoin may fall to $20,000.
Joel Kruger, a foreign exchange strategist at London investment management group LMAX, pointed out earlier this week that Bitcoin may return to $20,000 because it is still under pressure from global market sentiment.This analyst is referring to the recent stock market crash because of concerns about Spread of Covid-19 Delta variant.
“It would be foolish to rule out the possibility of falling below the June low. We believe that in this case, the #Bitcoin price may return to the old record high of around $20,000,” he added.
“But at that stage, we saw that the market was well supported.”
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