Bitcoin Market Analysis: Long-Term Holders are Not Selling
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According to the weekly on-chain report from analytics company Glassnode, the rate at which older Bitcoin (BTC) gets spent has decreased significantly. This insight is indicative that many traders are willing to hold their assets through the current market consolidation.
Glassnode noted that:
“A period of consolidation is to be expected as the market come to terms with the dramatic sell-off last week.”
The analytics company added that one of the most common questions on the minds of many traders is if the market is entering a bear cycle or if the market has stabilized and could rebound.
Glassnode’s report highlighted that long-term holders (those that have held BTC for 155 days and more) represent almost all profitable coins acquired before 2021. That said, short-term holders (those who bought in 2021) represent almost all BTC in unrealized losses.
The report revealed that short-term holders have offloaded a significant amount of their holdings and may continue to be a catalyst for more selling pressure moving forward.
Using the Average Spent Output Lifespan metric (ASOL), which paints a better picture of the average age of all UTXOs spent in a day, Glassnode added that older coins recorded a spike in spending activities in early May. This metric has fallen back below the accumulation range.
The on-chain data provider added that:
“This indicates LTHs [long-term holders] did not panic-sell and capitulate, and instead primarily HODLed through the dip.”
Key Bitcoin Levels to Watch — June 1
Bitcoin fell into another consolidation range after the bullish performance yesterday. The benchmark cryptocurrency is currently trading within a wedge as it records lower highs and higher lows.
The key reason for the prolonged consolidation is the absence of trading volume, as traders adopt a “wait-and-see” approach to the ongoing market uncertainty. That said, a break above or below the wedge should provide more clarity for traders.
Nonetheless, we retain a bullish bias and expect a break to the upside over the coming days.
Meanwhile, our resistance levels are at $37,000, $37,500, and $39,500, and our key support levels are at $35,000, $34,200, and $33,000.
Total Market Capitalization: $1.60 trillion
Bitcoin Market Capitalization: $678 billion
Bitcoin Dominance: 42.2%
Market Rank: #1
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