Bitcoin Long-term Holders Continuing To ‘Soak Up Supply’ Around $30K

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The data demonstrate that long-term investors are continuing to acquire Bitcoin (BTC) in its present range, despite the fact that they are underwater on a chunk of their Bitcoin assets.

An event for capitulation is often what defines a bear market. This is when disheartened investors eventually sell off their holdings, and the price of the asset either stabilize as a result of a reduction in the amount of money flowing into the sector or begin the process of bottoming out.

Bitcoin Holders Are The Remaining Ones

As per Glassnode, “the only survivors” are current Bitcoin (BTC) holders, who are “pushing down as values plummet below $30K.”

Since the sell-off in the cryptocurrency market in May 2021, the total quantity of wallets which had positive balances has stabilized during the last month. This may be seen as a sign that fewer people are entering the market to buy goods.

The current sell-off did not “inspire an injection of new users into the sector,” in contrast to the sell-offs in March and November, 2020 and 2018 respectively, after which an increase in on-chain act that “started the ensuing bull runs.” Experts on the Glassnode team said this shows that the current activity is being driven mostly by holders.

Bitcoin Update: Signs Of heavy accumulation

On the other hand, investors who take a contrarian stance consider the sideways price motion of Bitcoin (BTC) as a buying opportunity. This argument is shown by BTC accumulation trends, which have given back a close to perfect score over 0.9″ for the previous two weeks. This score indicates that Bitcoin is increasing in value. Contrarian investors perceive the sideways price motion of Bitcoin (BTC) as a chance to acquire the cryptocurrency at a time when other investors are disinterested in it.

In the case of bearish trends, high scores on this indicator “often trigger after a very big decline in price as investor mentality swings from uncertainty to value accumulation,” as stated by Glassnode.

The thought that Bitcoin is presently in an accumulation period was also mentioned by CryptoQuant CEO Ki-Young Ju, who asked his Twitter followers, “Why not buy?” in the tweet that was uploaded below.

An examination of the data in further detail reveals that the most recent accumulation has been driven in large part by entities that have more than 10,000 BTC and entities that have less than 100 BTC.

The recent volatility caused a gain of 80,724 BTC in the aggregate balance of entities holding less than 100 BTC. Glassnode commented that this was “remarkably comparable to the net 80,081 BTC sold by the LUNA Foundation Guard.”