Aaryamann Shrivastava
FXStreet
- Bitcoin’s long-term holders are seemingly buying the dips, sticking to accumulating for a while now.
- Long-term holders’ sudden bullishness usually is an indication of an upcoming recovery sooner than later.
- Bitcoin could be seen trading around $19,987 yesterday, with no apparent indication of an immediate change in trend.
The king coin is responsible for the direction the majority of the altcoins take, and every time Bitcoin goes red, it creates an atmosphere of fear that takes time to dissipate. But while that may spook the majority of the investors, one particular cohort of investors seems to not only be unfazed but actually far more active than before.
Bitcoin shot down by the CPI
The long-term holders (LTH) are one of the more interesting bunch of investors since these people chart their own path and are unbothered by market developments mostly.
Earlier this week, the US Consumer Price Index (CPI) report came out, and the same sent shockwaves across the financial markets throughout the world.
Bitcoin and the crypto market were impacted as well, with the former falling by 9.91% in a single day while the latter almost noted the elimination of $80 billion within 24 hours.
This incident acted as a huge blow to Bitcoin’s price since the buying pressure that was being generated for a while now subsided.
Bitcoin 4-hour price chart
The Relative Strength Index (RSI) highlights that the immediate selling pressure from yesterday will make a recovery slightly slower.
Long-term holders still don’t care
While other investors held back during periods of price falls, LTHs dove in and kept accumulating. The Liveliness of the asset has been declining since the end of July and is continuing to do so. This means that LTHs are accumulating to HODL.
Bitcoin Liveliness
Additionally, the Spent Age Volume bands noted a spike in the three months+ investors’; their activity backs up the accumulation spree, instilling optimism amongst investors.
Bitcoin SVAB
Whenever LTHs act positively, the market tends to flip its bearishness into bullishness, and the same is expected from Bitcoin hereon, although concrete signs of a rally are yet to appear on the charts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC experiences volatility post $100K milestone
Bitcoin rebounds to $97,000 on Friday after a volatile drop to $90,500, following its $100K milestone the day before. Ethereum maintains bullish momentum above key support levels, signaling a potential rally toward $4,000. In contrast, Ripple exhibits bearish tendencies, hinting at further declines.
XRP chosen alongside Bitcoin as treasury assets for Nasdaq-listed Worksport
Ripple's XRP is down 5% on Thursday following an announcement from Tonneau cover manufacturer Worksport that it would add the remittance-based token as part of its corporate treasury.
Gamestop, GME meme coin surge following Roaring Kitty return
Gamestop-based meme coins rose more than 40% on Thursday after popular trader, Keith Gill, stirred excitement in the meme coin sector with a post featuring a Time Magazine picture on social media platform X.
Ethereum Price Forecast: ETH overcomes key hurdle as ETF and staking inflows improve
Ethereum is down 1% on Thursday despite rallying in the European session to overcome a key descending trendline resistance that has lasted for three years. The top altcoin has seen increased bullish sentiment across staking protocols and ETH ETFs.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.