The price of the leading cryptocurrency, Bitcoin [BTC], is on the verge of collapsing due to several investors who purchased Bitcoin earlier at a better price from August to September, consistent with Glassnode.
Around most of the present market participants are long-term Bitcoin hodlers and buyers, in line with the official report by Glassnode analysts.
In line with the leading analysts, at the reporting time, around 9.6% of all wallets own coins brought earlier in August to September. Since this part is in unrealized minuses, and the crypto prices have fallen, but the owners of the coins haven’t yet sold them.
As within the chart below, the present situation is analogous in fractal to July-October last year. Then there was an identical volume of addresses “in the minus” after a pointy recovery from the collapse of March last year. But, then the hodlers were still ready to resist a panic sell-off, which was followed by the well-known rally to $20k+.
Bitcoin 7 Day Moving Average Chart – Source: Tradingview
Now here rise a very important question, after all, is whether or not the owners of the coins, who purchased the cryptocurrency earlier from August to September, will sell their assets to themselves at a loss. If so, this might provoke an extra depreciation of bitcoin further.
It is also an open question whether the remaining hodlers, which may potentially offer sufficient support by purchasing up the cryptocurrency, will interfere with the bears’ plans.
in line with the experts, hodlers attempt to keep the course in their present positions. This is often because long-term investors now hold over 80% of Bitcoin in circulation. Despite the low on-chain activity, there are still hints of “extreme coin holding behavior”, concluded Glassnode.
Bitcoin Price Chart – Source: Coinmarketcap
At the reporting time, the price of the top cryptocurrency, bitcoin within the BTC/USD pair is trading at $42,o34 USD. On the other hand, market capitalization has already dropped to $790.9 billion.