- IntoTheBlock gives insights into Bitcoin’s short-term and long-term demand characteristics.
- Bitcoin whales pause on their outflows but bullish volume fails to take over.
Every Bitcoin [BTC] accumulation cycle is often characterized by phases of heavy accumulation and slow phases. This is because the different market participants contribute to its performance.
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We tend to see traders HODLing for longer during the heavily bullish phases where they expect prices to continue rallying. Such situations are usually characterized by low sell pressure.
On the other hand, there are phases where BTC demand slows down and in such phases, we tend to see a surge in sell pressure due to profit-taking from short-term traders.
IntoTheBlock’s latest analysis gives insight into the characteristics of different market participants. According to the assessment, long-term holders have maintained healthy accumulation in the last 12 months.
1/ Long-term holders are persistently accumulating Bitcoin. The amount of $BTC held by short-term holders (<12 months) is currently less than prior to the 2021 bull run and continues to decrease. An increase in short-term holders has often coincided with surging prices #BTC pic.twitter.com/x5Ek9UhuqT
— IntoTheBlock (@intotheblock) July 28, 2023
One would assume that short-term holders have been selling because BTC has been struggling to stay above $30,000. IntoTheBlock’s analysis revealed that there was a surge in short-term buyers which contributed to the rally to the $30,000 level.
This means the same addresses have been contributing to short-term sell pressure.
Will Bitcoin bounce back from the current level?
The focus on short-term HODLing had a notable impact on the market, especially looking at BTC’s performance lately. This was largely because the incentive to sell and prevailing FUD may influence more sell pressure, especially from the retail market.
However, whales have the biggest impact on price and as it turns out, a significant number of whales have been selling their BTC in the last four weeks.
Source: Glassnode
BTC traders should note that the whale addresses recently dipped to their lowest level in the last four weeks. Addresses holding over 1,000 BTC bounced back slightly while those holding over 10,000 BTC leveled out in the last few days. This means the selling pressure swelled down and may explain why the selling pressure it experienced last week has subsided.
The whales have not demonstrated a significant sign of accumulation after the recent outflows. This could be because the market lacks another catalyst to trigger the next bullish wave. Furthermore, some of the concerns are especially related to crypto regulations.
How many are 1,10,100 BTCs worth today
BTC traded at $29,332 at press time after lateral price action for the last few days. It remains unclear whether it will have a breakout or break down from its current level.
Nevertheless, it will likely reclaim the $30,000 price level in case of another sizable breakout. A bearish outcome could lead to a retest of its short-term ascending support near or below the $28,000 price level.
Source: TradingView