- Long-term holders have enjoyed a gain of over 21% in the recent price correction.
- BTC price was still below the $30,000 level and some indicators were bearish.
Bitcoin [BTC] has seen some price corrections this year that have caused the price of BTC to fluctuate below the $30,000 mark. Though the price corrections sparked fear among many investors, long-term BTC holders behaved differently.
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CryptoQuant’s latest analysis revealed the health of long-term holders during price corrections in 2023. As for the current state of BTC, a massive drop in transaction volume has been noted lately.
Long-term Bitcoin holders make a profit
Crazzyblockk, author and analyst at CryptoQuant, spoke in a recent post analysis about how long-term owners have behaved in the past. Before the three bitcoin price corrections in February, April and July, the analysis examined the sum of realized prices of long-term holders.
According to the analysis, it happened during the price correction in February BTCThe market price was close to $24,800 while long-term holders realized a price of $27,800. However, in the next two corrections, the realized price of the long-term holders was below the market price, giving them gains of 10% and over 20%, respectively.
Source: CryptoQuant
The mentioned analysis
“This definition reflects the accumulation of bitcoins by these holders over the past few months and the reduction in their average price budget as they continue to buy bitcoins.”
A look at Bitcoin’s current scenario
Bitcoin’s on-chain metrics showed that long-term holders were still willing to hold onto their assets. The cryptos Binary CDD stayed green. This means that long-term holders’ movements have been below average over the past seven days, proving their willingness to hold onto their wealth.
It was also interesting to see that the whales did not sell their assets as the chart contained addresses with a significant number of addresses BTC stayed flat. In fact, the number of wallets with balances between 0 BTC and 1 BTC increased, which is attributed to the increasing accumulation of fish and shrimp.
Source: Santiment
Glassnode Alerts’ tweet pointed out that BTC transaction volume touched a monthly low of $815,291,038.84 on Aug. 7. A decline in the metric indicated less willingness among investors to move their assets.
However, investor confidence in BTC is not yet reflected on the price chart as the price is still below $30,000. At the time of writing, BTC trade at $29,027.52, with a market cap of over $564 billion.
To read Bitcoins [BTC] price prediction 2023-24
A look at BTC metrics suggested that investors might have to wait a little longer for an upside rally. Bitcoin net deposits on exchanges were high compared to the past seven days, which was bearish.
The King of Crypto’s aSORP was red, meaning more investors were selling at a profit. However, BTCOpen interest is declining, which could result in a trend reversal in the coming days.
Source: Coinglass
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