Bitcoin Bulls Hold $48K Amid Change in Long-Term HODLers’ Behavior
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Bitcoin (BTC) has fallen into a sideways momentum between$49k and 48k for the past week, following a bullish burnout. Some analysts worry that the decline in bullish pressure could trigger profit-taking across the board, which could cause more dips for the benchmark cryptocurrency.
That said, long-term HODLers (LTHs) have begun to exhibit mild bearish signs. Though LTHs are known for remaining bullish on Bitcoin regardless of price action, the current market correction cycle has shown little change in behavior for this group.
One metric highlighting this change is the Realized HODL waves which show that BTC purchased over the last six months has continued to mature. However, the volume of this phenomenon has dropped over the last month from 62% to 46%.
Another metric highlighting LTHs’ bearish change is the number of Coin Days Destroyed. This metric calculates the age HODLed coins are before they got sold. On Wednesday alone, Coin Days Destroyed summed up to 30 million days.
Also, active coin supply in the last six months has recorded a slight decline, proving that sell pressure came into play recently.
Nonetheless, the SOPR (Spent Output Profit Ratio) metric remained bullish for the primary cryptocurrency, indicating that HODLers are unwilling to sell at a loss. This should stave off bearish pressure in the near term.
Key Bitcoin Levels to Watch — August 29
Bears are running out of time and momentum to drive BTC lower as bulls massively defended the critical 200 SMA from sellers on Friday. BTC is now recovering towards the $49.5k consolidation top as bulls struggle to stay above $48k amid consolidation between these levels.
A break above the $49.5k level should end the current correction cycle and put Bitcoin on the path to $51k.
Meanwhile, our resistance levels are at $49,500, $50,500, and $51,400, and our key support levels are at $48,000, $47,000, and $46,000.
Total Market Capitalization: $2.09 trillion
Bitcoin Market Capitalization: $911.4 billion
Bitcoin Dominance: 43.5%
Market Rank: #1
