As a seasoned crypto investor with scars from the 2017 bull run and the subsequent bear market, I find myself both excited and cautious about the current Bitcoin consolidation. The sideways movement between $57,000 and $63,000 might be dull for some, but as a glass-half-full kind of person, I see it as a golden opportunity to accumulate more BTC.
In early August, Bitcoin experienced a surge of around 20%, even briefly exceeding $50,000, following a sudden drop or flash crash. Yet, since then, its price has been moving within a limited band as enthusiasm persists.
Examining the day-to-day price fluctuations, Bitcoin currently oscillates between approximately $57,000 and $63,000. Despite traders’ optimistic outlook, it remains stuck in a horizontal trend, with expectations of an upward price movement in the near future.
Bitcoin Consolidates, But Addresses Are Stacking
Despite prices moving sideways and bulls finding it difficult to surpass $63,000 for new highs, on-chain indicators suggest robustness and conviction among investors. The lack of movement has resulted in a narrow and somewhat dull price range, but Glassnode observes that accumulation is taking place.
Examining the Glassnode Accumulation Trend Score (ATS) for Bitcoin, it has recently spiked to its highest level at 1.0. This increase indicates a significant return to buying or hoarding, primarily by large investors such as institutions and high-volume traders (whales), who are seizing the opportunity presented by current lower prices to amass more Bitcoins.
Previously, it was disclosed that the issue in question had a far-reaching presence, causing fluctuations in prices. Notably, this situation unfolded post the peak of prices in March, resulting in an overwhelming surge of supply across all storage facilities.
Initially, individuals holding Bitcoin tended to sell off their coins to realize profits. However, this pattern seems to be changing, particularly when looking at accounts linked to exchange-traded funds that directly invest in Bitcoin.
BTC HODLers In As Speculators Flushed: What’s Next?
As reported by Glassnode, the influx of HODLers and large entities indicates a significant surge of confidence in the future, as they are optimistic about what’s to come. This increased interest signifies that approximately 300,000 Bitcoin have been accumulated by long-term holders (LTHs) over the past three months.
Furthermore, it’s worth noting that the long-term to short-term holder ratio has increased by 8.7% within the past month. This rise suggests that long-term holders have been accumulating more Bitcoin.
In these recent times, I’ve noticed a dwindling enthusiasm among short-term investors, those who joined the crypto game within the last 155 days. This decrease in Short-Term Holder (STH) activity seems to be leading to more steady market movements. This stability, in turn, provides an opportunity for Long-Term Holders (LTHs) like myself to potentially double our investments.
As an analyst, I find myself in a position of caution at this moment. Although some traders may choose to seize opportunities by purchasing during the dip, I personally lean towards the more conservative approach. I believe it would be prudent to wait for a clear break above $63,000 before making any significant investments. Should prices surge beyond this point, they could potentially reach the multi-month resistance zone hovering between $70,000 and $72,000.
Read More
- ENA PREDICTION. ENA cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- Red Dead Redemption: Undead Nightmare – Where To Find Sasquatch
- USD COP PREDICTION
- USD ZAR PREDICTION
- FLOKI PREDICTION. FLOKI cryptocurrency
2024-08-16 17:29