- Investors holding 1,000-10,000 BTC and US institutional holders have fallen over the past few months.
- The price of BTC remained below SMA as the bear trend continued.
Bitcoins [BTC] the price is crawling at a snail’s pace and the dominant direction remained bearish for an extended period of time. Nevertheless, a potential move towards a bullish trend could occur, but it depends on the actions of two different groups of holders, as highlighted in a recent report from CryptoQuant.
Read Bitcoin [BTC] Price Forecast 2023-24
Bitcoin holders are stopping the bull trend
A recent report from CryptoQuant suggested that the current Bitcoin trend could potentially transition into a bullish phase depending on the uptick in two key metrics.
The first measure, known as the UTXO value bands, indicated a decrease in BTC holdings for certain groups of investors. These bands provide insight into the distribution of BTC holdings across different categories.
Historically, BTC prices have skyrocketed when large investors, often referred to as whales, have accumulated significant amounts of BTC.
In particular, the rise of the 1,000-10,000 BTC holding group has led to significant price increases. However, the latest data shows a departure from the previous pattern as the amount of BTC held by this group has not increased at the time of writing.
Source: CryptoQuant
Additionally, another metric, the Geographical Supply Distribution by Entities, sheds light on Bitcoin holdings by institutions in the United States.
Since April 2021, there has been a decline in BTC holdings among US institutions. Interestingly, this decline continues despite the 100% increase in BTC prices this year, suggesting a lack of capital inflow from US institutions.
Source: CryptoQuant
Bitcoin’s bad run continues
Examining Bitcoin’s daily timeframe chart indicated that the press time downtrend would continue. At the time of writing, Bitcoin was trading at around USD 25,600, with a marginal loss of less than 1%.
The price had fallen below the short moving average (yellow line), which acted as a resistance level around $27,000.
Source: TradingView
In addition, the Relative Strength Index (RSI) indicated a continued bearish trend. The RSI was at 40, indicating a move away from the oversold zone, but still with strong bearish momentum.
How much are 1,10,100 BTC worth today?
MVRV offers mixed opportunities
After a period of profitability seen in March and April, Bitcoin holders have gone through a phase of undervaluation of their holdings. This is reflected in the 30-day BTC Market Value to Realized Value (MVRV) ratio, which indicated that the asset was undervalued.
At the time of writing, the MVRV ratio stood at -2.87%, indicating the magnitude of the loss BTC holders have suffered. However, this measure also suggested the possibility of accumulation and the potential for a subsequent price increase.
Source: Sentiment