Bitcoin (BTC) holders facing challenges
Last Monday, Bitcoin (BTC) holders experienced a significant drop in price, with the value plummeting from $61,000 to $54,000 in a short span of time. The sudden decline marked one of the worst days of the year for Bitcoin, resulting in substantial losses and liquidations. While Bitcoin has managed to recover from the drop, data suggests that the cryptocurrency’s price may still be vulnerable to further declines.
Bitcoin holders exhibit lack of confidence
One key indicator highlighting this sentiment is the change in the net position of Bitcoin holders. The Holder Net Position Change metric tracks whether long-term holders are increasing their holdings or reducing their exposure to the cryptocurrency. An increase in this number suggests that holders are accumulating more Bitcoins, indicating a potential price increase. Conversely, a decrease implies that long-term holders are selling off their holdings, exerting downward pressure on the price.
Recent data from Glassnode indicates that long-term holders have been selling some of their tokens since August 5. Despite rising spot prices pushing BTC higher, holders sold 4,881 BTC on Saturday, August 10.
BTC price vulnerable at $61,000 level
Currently trading at $61,122, Bitcoin is approaching a critical supply zone between $61,616 and $62,477. If the cryptocurrency reaches this area, it may face rejection and drop below the $60,000 mark. Although there are some bullish signals, the Momentum Oscillator (AO) remains negative, indicating weak momentum and a potential upcoming price decline.
While a double-digit correction is unlikely, a drop to $60,499 in the short term cannot be ruled out. However, if ETF inflows continue to rise and long-term holders accumulate more, Bitcoin’s price may rebound to $63,205 or even $67,058.
Conclusion: Uncertainty looms for Bitcoin
In conclusion, Bitcoin holders are currently navigating through a period of uncertainty, with the cryptocurrency’s price facing potential risks of further declines. The behavior of long-term holders, combined with ETF inflows, will play a crucial role in determining Bitcoin’s price trajectory in the coming weeks. Traders and investors should closely monitor these factors to make informed decisions regarding their BTC holdings.
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