BTC downward correction: holders remain calm, speculators in panic

The technical situation for bitcoin remains the same. It is moving in line with yesterday's forecast..

Let us take a look at the reasons for the recent drop in the main cryptocurrency.

The recent bitcoin's downward correction was really sharp, but it was not a catastrophe. Nevertheless, speculators are in panic. According to the research performed by Glassnode, those who bought the main cryptocurrency for hold strategy almost ignored the recent decline.

Statistics provided by Glassnode unveiled that buy positions that were opened no more than a week ago were affected by bitcoin's slide and brought losses.

At the same time, the coefficient remained the same for buy positions opened a year ago or even earlier. Changes in cryptocurrencies that were bought more than a month ago also became slower.

During this period, the average lifespan of spent coins declined. At the moment, it is approximately 30 days. This dynamic began in January, thus proving the fact that long-term investors are sure that BTC will continue its bullish trend.

However, we should take into account that a bearish trend could be caused by a lack of changes in those cryptocurrencies that were bought long ago. The latest statistical data disclosed that holders are not ready to spend their bitcoins at the moment.

The indicator that reflects the movement of old coins also proves the calmness of long-term investors. Since the beginning of the year, it has not changed significantly. If holders begin selling off bitcoins, the indicator will rise.

At the same time, BTC continues gaining in value. The price broke the local resistance level of $53,980.47 (a lower blue dotted line) and consolidated above it. Now, the bitcoin/dollar pair may climb towards the next resistance level of $57,513.35 (the next blue dotted line). On its way, bitcoin has a horizontal line that is 100% Fibonacci extension level. The price is likely to pass this level easily.

After reaching $57,513.35, BTC may drop or upwardly break this level. In case of a success, bitcoin may jump to $61,000 per coin.

analytics608821d4de78c.jpg

The material has been provided by InstaForex Company - www.instaforex.com

Pages