Bitcoin has found support above the $27,000 mark, and according to analysis, this is due to long-term holders buying into a sell-off from the short term holders.
While the market rally from earlier last week has slowed, many #cryptocurrency have experienced a slight uptick over the past 24 hours.
CryptoQuant analyst, Adam Mourad, explained that short-term holders took profits when #BTC reached a high of $28,500 earlier last week. However, long-term holders have stepped in to buy the dip, creating a support level at around $27,100.
It's worth noting that the supply held by long-term holders is significantly higher than that of short-term holders. The increase in buying by long-term holders indicates their belief in $BTC
Decline In Exchanges Reserve:
On-chain data from CryptoQuant, reveals a massive decline in exchange reserves this week. The trend of moving assets to cold wallets have surged in the past few months, further supporting the notion of long-term holders accumulating and hodling their bitcoin.
Additionally, analysis of the profit and loss on-chain metric for short-term holders indicates that they mostly sold at a profit last week, taking advantage of bitcoin's upward momentum.
As of now, the price of #bitcoin stands at around $27,866 representing a 0.22% decrease over the past 24 hours, according to #Binance
As we head into the final quarter of the year, Do you think the momentum from short-term profit-taking continue, or will the support from long-term holders prevail?
Do share your thoughts and insights.
What do you think lies ahead for Bitcoin and the wider cryptocurrency market in the coming months?
Will we see new all-time highs or a period of consolidation?
Leave a comment below and let's continue the conversation.
Have a great day ahead
Until next time....
