Thanks to Bitcoin’s invalidation at $ 60,000, some investors have sweated in their seats. The correction to $ 55,600 should be accompanied by an immediate rebound. However, in the past 24 hours, it has failed to hold a position above $ 60,000.
In this article we are going to look at BTC’s market position from a broader perspective of the fundamental and market structure in the chain. It is also analyzed whether it is actually necessary to lose sleep via the movement of BTC.
Long-term Bitcoin holders don’t sweat
Source: CryptoQuant.com
According to the attached chart, long-term holders of Bitcoin have barely broken a sweat over the recent fixes. In fact, data from Cryptoquant showed little to no variation in the value of the LTH-SOPR. This implied that BTC UTXOs with a lifespan of more than 155 days had not changed the address in the last 5 months.
Well, these are addresses that contain a large amount of BTC. Hence, a lack of selling pressure in the end is an indication of the minimal fear of investors.
In comparison, it can be observed that the value was extremely high in the first and second quarters of 2021. At that time, massive corrections of 50% were identified for the digital asset.
Source: CryptoQuant.com
Likewise, the Coinbase premium index continued to rise steadily in the charts. The Premium Index is defined as the percentage difference between BTC / USDT and the Coinbase price of BTC / USD. Whenever the value is higher, this is a sign of stronger spot buying pressure from Coinbase traders.
The fact that the premium index did not see any significant decline in the past week means that the selling pressure on the stock market has not increased either.
Is this just a typical correction?
Source: trade view
From a technical point of view, the fix looks more reasonable than devastating. Since its bullish rally in July, Bitcoin has taken a steady approach to testing a strong area of resistance. Its initial surge of $ 53,000 was answered with a correction to $ 42,000, after which it hit a new all-time high.
At press time, it can now be deduced that the bullish structure will not break unless the price falls below or closes a daily candle below $ 53,000. The asset, which continues to hold a position above its sloping support, is a strong long-term bullish sign.
Patience is the key
Making a hasty decision to sell may not be the best investment move. Bitcoin remains in the green on the chain’s pricing structure and fundamentals.
Therefore, it may be best for investors to enjoy the ride for now.
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