On-chain data suggest that Bitcoin will retest $16,000 while institutional investors keep piling

  • Bitcoin on-chain metrics indicate that a sell-off is in sight as long-term bitcoin holders seek to take profit.
  • Institutional investors become more eager to buy more Bitcoin as they prepare to exploit possible market sell-off.
  • Bitcoin price charts reinforce the bearish case showing it may retest $16,000.

Onchain data reveal Bitcoin price may be poised for weeks of consolidation or considerable bearish dip at worst. Meanwhile, corporate investors get more desperate to take advantage of any imminent dip.

Onchain record spell brief doom for bitcoin price while investors seek to utilize the dip

Data from on-chain market analyst, Glassnode, shows that long-term Bitcoin holders are taking short positions to realize profit.

While this unfolding event might seem disturbing, it is important to note that it provides a bullish outlook for Bitcoin price in the long run. Historical data presents this as one among the many occurrences that preceded previous bull cycles, pointing to the fact that the imminent dip is a healthy market correction.

According to the trend, a sell-off from long-term holders leads to a redistribution of Bitcoin's circulating supply, thereby giving room for more retail investors' entry just before the rallies.

Total Bitcoin supply from long term holders

Total Bitcoin supply from long term holders

As the market anticipates moments of intermittent sell-off, corporate investors are growing an insatiable appetite for Bitcoin as they position themselves to take advantage of any downward trend. 

Microstrategy, which currently owns over 40,000 BTC, remains among the institutional investors with the highest interest in Bitcoin. The business analytics firm has announced that it aims to raise $400 million through sales of promissory notes, which would be used to buy Bitcoin

Bitcoin may retest $16,000 before making another upswing

Meanwhile, the activities from institutional investors and long-term Bitcoin holders are expected to cause significant price action in the short term.

Bitcoin price in a broader time frame remains bullish as it sits at $18,870 at the time of writing. As shown on the weekly chart, there is potential for a price consolidation similar to August when it made a 30% correction before a rebound to $19,500.

BTC/USD Weekly chart

BTC/USD Weekly chart

The likelihood of another reaccumulation could lead to another period of volatility followed by a downward price action that would see prices slice through $16,000, creating a potential entry-level within this zone.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price looks south towards $0.0000060 as technicals favor SHIB bears

Amidst an underlying downbeat mood across the crypto market, Shiba Inu extends the bearish momentum into the third straight day on Sunday. The tide is seen turning in favor of SHIB bears once again, as well depicted by Shiba Inu’s daily technical graph, with the market licking its wounds from the China-led blow. Upside remains elusive with 61.8% Fib offering strong resistance.

More Shiba Inu news

Cardano price eyes a drop towards $1.85

Cardano price is once again on the slippery slope this Sunday, kicking off a new week on the wrong footing, as ADA bulls lack follow-through recovery momentum. ADA sellers target 100-DMA at $1.85 on a firm break below $2.

More Cardano News

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point as DOT awaits a range breakout

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance, 50-DMA guards the downside.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast