- CryptoQuant’s latest research found that BTC’s long-term holders remained loyal despite price swings
- BTC’s market indicators painted a positive picture overall
Tuesday, August 29 can be considered a good day for the cryptocurrency market as a whole. This came through the District of Columbia Court of Appeals ruled in favor of grayscale and crushed the SEC’s logic for denying an ETF.
Most cryptocurrencies at the time of writing operated in the green, Bitcoin [BTC] included. At the time of writing, the king of cryptocurrencies switched hands at $27,655 and is trading 6.47% higher in the past 24 hours.
However, can BTC investors assume that the price movement is back on track for good?
Read Bitcoin’s [BTC] Price forecast 2023-2024
It’s all about the sentiment
According to a analysis posted by CryptoQuant analyst OnchainedInstitutional BTC investors, individual traders, and long-time holders showed resilience during the recent price drop. Moreover, the CrytpoQuant analyst also stated that the recent price shift highlighted holders’ unshakeable faith in BTC.
This was because more than 20,000 BTCs were transferred from exchanges to cold wallets. In addition, this move indicated a propensity for holders to hold their assets for the long term. The analyst also called this move an attempt by investors to protect their invested capital from the ongoing market instability.
Source: CryptoQuant
This indicated that long-term owners were in it for the long haul. But private investors also showed some interest. On August 29, BTC holders holding more than 0.1 coins reached an all-time high of 12,286,836.
While this update would not significantly affect the coin’s price, it was a strong indication that retail investors were jumping on the Bitcoin bandwagon.
#Bitcoin $BTC Number of addresses with more than 0.01 coins just reached an ATH of 12,286,836
Previous ATH of 12,286,555 was observed on August 28, 2023
View statistics:https://t.co/oyguxpaA2y pic.twitter.com/2xvwwdoDal
— Glassnode Alerts (@glassnodealerts) August 29, 2023
Where will BTC go from here?
At the time of writing, BTC was trading almost 6% higher than its opening price on August 29. This was a good sign for holders in general given BTC’s recent drop below $26,000. Moreover, a huge development in the Relative Strength Index (RSI) was also seen on the price chart.
How much is 1.10.100 BTC worth today?
BTC’s RSI moved from its oversold value of 26 on Monday, August 28 to 49.79 at the time of writing. The rise in the RSI indicated a resurgent buying pressure from traders and investors in the market. In addition, the Awesome Oscillator (AO), although below the zero line, flashed green when pressed.
Source: TradingView
However, a look at the Moving Average Convergence Divergence (MACD) did not move as fast as the RSI. While the RSI took off nicely, the MACD only managed a bullish crossover, albeit below the zero line.
While this was good news for holders in general, BTC investors may need to keep the buying pressure alive. Given BTC’s slow price decline and sudden price increase, investors may still need to be wary of signs of a reversal. Traders should therefore proceed with caution.
