Although Bitcoin price struggled in the past week as it dropped by $10,000, coin accumulation continues
The last 24 hours have been volatile for Bitcoin price and altcoins. BTC saw a few thousand-dollar moves in both directions before falling around $46,000. BTC hodlers are remaining steadfast despite an overall sluggish start to the week in terms of market action. At press time, BTC is changing hands at $45,836, recorded a slight increase of 3% in the last 24 hours. Ignoring the fake news-induced spike a few hours ago, Bitcoin has remained relatively flat over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price reached a low of $43,400 before bouncing and closing near $46,000
Bitcoin struggled in the past week as it dropped by $10,000 on September 7th to a multi-day low of $43,000. It attempted a quick recovery but was rejected on numerous occasions at around $46,000. Ignoring the fake news-induced spike hours ago, BTC has remained relatively flat over the past 24 hours. As AZCoin News reported, Walmart did not partner with Litecoin, and the $2,000 BTC candle was short-lived, lasting about an hour before a similar red one followed it.
The crypto market reacted immediately, with BTC rising from $44,500 to a daily high of just under $46,000. In another development, Glassnode has confirmed that those holding bitcoins more than a year old are incredibly reluctant to sell them.
The hardcore hodlers are the ones that buy up BTC when there are volatile downswings in price, often setting their bids when the asset is tanking hard. This action can be seen on-chain and has been detailed in the firm’s weekly analysis.
Glassnode classifies long-term holders as those with coins older than 155 days and short-term holders as those younger. It revealed that at the recent high of $52.8K, almost 17% of the coin supply was owned by short-term holders and profit.
“What this reflects is the considerable accumulation that occurred between the recent low of $29k and up to the lower bound of the Q2 topping range”, Glassnode stated.
Bitcoin long/short term holder supply | Source: Glassnode
In terms of the percentage of the supply held by long-term holders, the report noted it reached 79.5% of all BTC coins this week. This is the same as levels in October, just before the 2021 bull market started. This is not to say that another considerable bull run is imminent, just that accumulation is still occurring, and longer-term Bitcoiners are reluctant to sell. It added that long-termers currently own the most coins in history, almost reaching 13 million BTC this week.
“Peaks in the long-term holder (LTC) owned supply typically correlate with late-stage bear markets which are historically followed by a supply squeeze and initiation of cyclical bull runs,” Glassnode added.
Long term holders are still buying Bitcoin here | Source: Glassnode
In the recent sell-off, old coins have been kept on wallets without moving to exchanges, indicating that long-term holders are unwilling to take profits at the current price and prefer to hold further.
Crowd FUD has hit historic levels toward BTC, according to our algorithm measuring commentary volume, combined with positive vs. negative coin scores. Severe negativity has historically led to inevitable price bounces after weak hands drop out.
Altcoins also painted a more positive Tuesday, with all of the top ten cryptocurrencies seeing at least 3% gains. They were led by Solana (SOL) and Polkadot (DOT), seeing closer to 10% returns. The largest altcoin Ether (ETH) was recovering, passing $3,300 while still down 14% compared to the same time a week ago.
The cumulative market cap of all crypto assets, which was were pumped and dumped by billions yesterday, is now nearly $2.091 trillion.
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