There is a risk of bitcoin price dropping to $23,000, but that doesn’t seem to bother large holders of the flagship digital asset, who have been accumulating BTC at a very fast pace.
Ali Martinez, BeInCrypto’s Global Head of News, citing on-chain data from Glassnode, pointed out that BTC lacks strong support below $25,400. He said that if the price breaks below the threshold, the market could see a quick correction to around $23,000.
ETF affects bitcoin price action
Given that the asset is currently trading at $25,841 according to BeInCrypto data, there is a real risk of breaking this support level. The extreme volatility of the last few weeks complicates matters further.
Over the past month, BTC has seen an 11.4% drop. Over the past five days, the leading cryptocurrency has fluctuated from $25,000 to $28,000 and then back to $25,000.
BTC price action. Source: BeInCrypto
This price turmoil is largely due to developments related to spot bitcoin ETFs. The announcement of Grayscale’s legal success caused BTC’s value to surge, but optimism faded as the SEC delayed its decision on the pending ETF filings.
Market observers claim that the asset is currently in a precarious position and the dominance of either bullish or bearish sentiments will determine its future trajectory. Blockchain analytics company IntoTheBlock said:
“A bearish sentiment could trigger a rush to breakeven and increase sales volume. However, if there is strong enough upside momentum, such as from an ETF approval, Bitcoin could clear these hurdles.”
Long term owner unaffected
Meanwhile, data from IntoTheBlock shows that addresses holding 0.1% or more of BTC supply have added more than $1.5 billion worth of assets over the past two weeks.
Bitcoin large holder. Source: IntoTheBlock
The addresses of major bitcoin holders, a key metric, have been showing interesting trends over the past month. The net flow has steadily increased after a drop in early August, reaching a bottom on August 22nd. Notably, a significant increase in net flow was observed between August 28th and 29th.
This period coincided with the postponement of the SEC’s decision on spot bitcoin ETF applications, a time when the flagship cryptocurrency showed signs of extraordinary volatility.
Additionally, Glassnode data shows that the supply of long-term owners is now close to 15 million. In comparison, short-term holders currently hold around 2 million of the supply.
Disclaimer
In accordance with Trust Project policies, BeInCrypto is committed to unbiased and transparent reporting. The goal of this news article is to provide accurate and timely information. However, readers are encouraged to independently verify the facts and consult a professional before making any decisions based on this content.
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