Has Bitcoin Price Bottomed?
Long-term Bitcoin (BTC) holders appear to have lost faith in the power of the cryptocurrency as the BTC price continues to show negative momentum. Perhaps these holders have already begun to slowly merge their BTC at a loss, in the hope of partially preserving their investments.
In its latest report, Glassnode found that 90-Day Coin Burned Days (CDD-90) is at an all-time low. This suggests that the old BTC were in sleep mode, as holders, without losing optimism, simply kept them against the backdrop of negative market dynamics. However …
HODL or not to HODL?
According to Edris, an analyst at CryptoQuant , observing the analytics of the Inflow platform, it is clear that the tokens, which have been dormant for 6–18 months, have begun to actively redistribute in the last period.
Edris also added that most of these coins were purchased during the period of rapid market growth in 2021 at a rate of more than $30,000. about 50% loss.
However, there are positive signs in all this. According to Edris, this kind of activity usually signals the end of a bear market cycle.
“In the later stages of a bear market, even the most loyal investors tend to capitulate out of fear and sell their tokens at huge losses to prevent even bigger losses. Such capitulations usually occur in the last few days or months of a bear market, indicating that a bottom may form in the near future”
At the same time, Edris admits that the current period of the bear market may be coming to an end, as over the past two quarters, BTC performance has shown stagnation.
According to analytical data from Santiment , over the past six months, the average investment age in dollars and the average age of coins are showing an upward trend.
This means that some holders of investments in BTC have been inactive for some time. Among other things, stagnation often makes recovery in asset prices difficult. It follows from this that with any significant increase in the BTC rate, these “sleeping” coins will have to show some activity.
At press time, BTC is trading below the psychological $20,000 mark.
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