Heavy Bitcoin Accumulation Detected When BTC Price Refuses To Go Below $ 30,000

Bitcoin (BTC) price remained relatively flat over the weekend, nearing closer to $ 34,000 on July 11, but BTC / USD is down nearly 50% from its all-time high of $ 65,000 in mid-April hasn’t stopped investors Bet on the long-term bullish outlook for the digital asset.

According to one of Glassnode’s metrics called Liveliness, the Bitcoin market has seen a change in the “macro-selling behavior” of long-term investors. Hodling represents the ritual reaction of crypto investors to a downtrend in the market, a meme-driven investment strategy that originated in a drunken forum post in 2013 and the bug.

Meanwhile, vibrancy is the ratio of the days of accumulated coins destroyed to the cumulative total of all days of coins ever accumulated by the network. It varies from 0 to 1, with 0 representing the highest percentage of inactive Bitcoin supply, i.e. the HODLing behavior. It shows that the worldwide accumulation of coin days has exceeded the number of destroyed coin days in on-chain activity.

However, a higher degree of distribution does not necessarily predict a retrograde cycle. For example, from November 2020 to April 2021, the liveliness rate increased with the Bitcoin price, suggesting that the Bitcoin market has not entered a bearish phase despite the lower HODLing behavior.

This could be due to a surge in trading volume earlier this year. Bitcoin trading activity totaled over $ 6 trillion in the first quarter, compared to $ 1.14 trillion in the fourth quarter of 2020, according to data received from Bitcoinity.

While long-term owners spend their Bitcoins between November 2020 and April 2021, higher trading volumes on all crypto exchanges indicate a need to sell, and retailers have absorbed the selling pressure. But in April, as analyst Willy Woo notes, the sale overcame the usual buying pressure in the bull market.

Speculators began to sell their new coins to long-term owners, Woo wrote in a press release published on July 2nd, referring to the so-called “Rick” chart. Astley “studies the flow of Bitcoin between strong and weak parties. Excerpt:

“It is very clear to see that long-term holders are mining speculative coins at a rapid rate. Now it is a waiting game until this is reflected in the price movement; the data confidently point to a consolidation floor developing. “

Bitcoin holds 30,000 CZK

A spike in sentiment on Bitcoin’s accumulation comes as the cryptocurrency continues to maintain an uptrend above the heavily held support of $ 30,000.

The BTC / USD exchange fell to $ 30,000 for the first time on May 19 during the general crash of the crypto market. Since then, the pair have tested the soil at least four times only to see a strong rebound afterwards. That has turned $ 30,000 into psychological support that, if broken to the lows, threatens to push Bitcoin price down to as much as $ 20,000.

Joel Kruger, a forex strategist at London-based investment management group LMAX, noted earlier this week that Bitcoin could return to $ 20,000 as sentiment remains under pressure. The analyst refers to the recent stock market crisis amid concerns about the spread of the Delta variant of Covid-19.

“It would be foolish to rule out a relapse below the June low, and we believe there is risk in that case if #bitcoin price could return to its old record high of around $ 20,000,” he added.

“But at that point in time we noticed that the market was being very well supported.”