Bitcoin is still struggling to break through the US$66,800 barrier. As of now, BTC is trading at US$65,137.46, having slipped by 0.5% over the last 24 hours. Despite several attempts to push past this point, the primary cryptocurrency has been unable to sustain upward momentum.
Similarly, most major altcoins are displaying bearish signals. ETH remains below the $3,620 resistance level, while XRP has dropped below the $0.50 support threshold. ADA is finding it challenging to maintain its position above $0.40, and Solana is endeavoring to exceed the $140 mark.
A recent study from CryptoQuant has unveiled an intriguing discovery: the lack of participation from the retail community in the current Bitcoin market. Historically, peaks of excitement in previous market cycles were characterized by a surge in currencies held for less than three months. This pattern suggested that long-term investors, often referred to as the ‘smart money’, had already taken their profits, leaving speculators and newcomers in control. This trend usually resulted in heightened volatility.
However, in the present market cycle, only about 35% of Bitcoin is being held for less than three months, indicating that we are still in the initial stages of a bull market, according to CryptoQuant’s analysis. Additionally, the level of realized profit among short-term investors, as measured by the SOPR index, has not yet reached the peaks observed in previous cycles. This implies that the market is still primarily influenced by long-term investors, creating a solid foundation for price stability.
Given this strong framework and the limited number of short-term investors, a sudden shift to a bear market is improbable, leaving the possibility open for a substantial recovery before the cycle’s peak is reached. “This robust structure and the relative scarcity of short-term holders make an immediate transition into a bear market less likely, indicating that there is still potential for a significant recovery before the cycle top forms.”
In the meantime, Ethereum wallets are displaying continued growth and accumulation, indicating sustained interest in the leading altcoin. This discrepancy in portfolio behavior points to current selling pressure on Bitcoin.
Cryptocurrency Market Today
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