Bitcoin price remained relatively stable over the weekend, hovering slightly above $ 34,000 for the time being. Even so, it’s still nearly 50% off its all-time high of $ 65,000 in mid-April, but the massive downward movement hasn’t stopped investors looking to the long-term bullish outlook.

According to Glassnode’s Liveliness Metric, the Bitcoin market has seen a change in the “macro-holding” behavior of long-term investors. Holding represents investor behavioral response to downturns in the market, a meme-driven investment strategy that originated in a Drunken Forum post in 2013, and Typo Art (the art of arranging, designing and creating sentences and letters).

Liveliness is the ratio of Coin Days Destroyed (CDD) to the cumulative sum of all Coin Days ever accumulated by the network. It varies from 0 to 1, with 0 representing the highest percentage of inactive Bitcoin supply, i.e. holding behavior. It shows that the number of days of coin accumulation worldwide has far exceeded the number of days coins were destroyed in the on-chain activity.

The Bitcoin life rate signals the accumulation phase | Source: Glassnode

However, a higher degree of distribution does not necessarily predict a retrograde cycle. For example, from November 2020 to April 2021, the liveliness ratio increased with the Bitcoin price, which indicates that the Bitcoin market has not entered a decline despite the lower holding behavior.

This could be due to a surge in trading volume earlier this year. Bitcoin trading activity totaled more than $ 6 trillion in the first quarter, compared to $ 1,140 billion in the fourth quarter of 2020, according to data received from Bitcoinity.

Monthly Bitcoin Trading Volume | Source: Bitcoinity.org

As long-term owners spend their bitcoins between November 2020 and April 2021, the increased trading volume on all exchanges shows that retail demand has absorbed the pressure. But in April, as analyst Willy Woo notes, selling pressures outstripped the usual buying pressures in the bull market.

Speculative participants start selling their new coins to long-term owners, Woo Written in a news release published July 2 relating to the “Rick Astley” chart, which studies the flow of Bitcoin between strong hands and weak muscles.

“It is very clear to see that long term holders are absorbing speculative investor coins at a strong rate. Now it’s a wait game until this is reflected in the price movement. The data confidently indicate that a bottom of accumulation is forming. “

Bitcoin is evolving from weak investors to strong investors | Source: Willy Woo Newsletter

Keep Bitcoin at $ 30,000

The bullish accumulation sentiment comes as Bitcoin continues to maintain its bullish bias above the $ 30,000 support.

Bitcoin is still in the $ 30,000 to $ 40,000 range | Source: TradingView

Bitcoin first fell to $ 30,000 on May 19 during the general crash of the crypto market. Since then, it has tested the soil at least four times only to see a strong recovery afterwards. That turned $ 30,000 into a psychological aid that, if broken, threatens to push the price of Bitcoin as low as $ 20,000.

Joel Kruger, Forex strategist at London-based investment management group LMAX, has Note Earlier this week that Bitcoin could return to $ 20,000 as it continues to be under pressure from global market sentiment. He was referring to the recent stock market crisis triggered by concerns about the spread of the Delta variant of Covid-19.

“Do not rule out a decline below the June lows and if so, there is a risk that Bitcoin price could revert to the old ATH of around $ 20,000. But at this point in time we see the market very well supported. “

You can see the details of the bitcoin price.

Mr. Teacher

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page