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- The Bitcoin price has recovered from recent lows, supported by a surge in long-term holder accumulation.
- Short-term investors have been exiting the market, likely due to recent volatility and profit-taking.
- Bitcoin’s daily chart shows bullish momentum, with a surge in volume and positive indicators like MACD and RSI.
Bitcoin (BTC), the most dominant crypto by market cap, rules the crypto-verse. The Bitcoin price failed to please crypto enthusiasts in its second quarter and is about to end the third quarter of 2024. It has been in a correction phase since the first quarter registered peak.
Bitcoin crypto’s last traded price was $56,994 and has presented mild changes in intraday. The price recovered from $53489 support in the three days after the fall was witnessed.
Its market cap has surged by 3.56% intraday. Additionally, the fear and greed index has signaled improved market conditions. With the advance in price and future optimism for BTC, the index has recovered from yesterday’s 26 fear value to 33.
It signified the buying witnessed in BTC and displayed improved probability in the risk-taking capacity of investors.
Does the increase in long-term holder accumulation suggest increased confidence ahead?
According to the CryptoQuant, the past few weeks show a significant decline in short-term holders’s net positions. On the net position chart, red areas exhibit that many short-term investors and traders have exited the market.
This indicated that the holdings were getting squared off by the short-term investors. It happened in response to recent market volatility, either realizing profits or losses. This further suggests investors have lost confidence due to volatility and are trying to minimize risk.
On the contrary, the long-term holders’ net positions have advanced, highlighting that long-term investors continue accumulating Bitcoin crypto. On the net position chart, green areas show that long-term holders are growing their holdings.
It is an optimistic and bullish signal for the market. This is because the long-term holders are often viewed as more stable and confident in their investment holdings.
Similarly, the surge in long-term holding positions may signify that long-term investors have seen the potential. They view the current price levels as an opportunity for accumulation on-door in anticipation of future growth.
The advanced accumulation by Long-term holders could position the market for a potential rebound and lead to price stabilization. In contrast, further sell-offs from short-term holders might push short-term downward pressure on Bitcoin’s price.
After the mini-crisis of Japan on August 5th, 2024, the NVT Golden Cross has been consistently constructing noteworthy higher lows. The witnessed structure on the graph compresses the NVT Golden Cross within a symmetrical triangle.
Per analyst @burakkesmeci’s post on CryptoQuant, this development suggested that the next price movement could ignite sharply. Based on sentiment, chances are high for the upside. However, the pattern seems non-biased, so a downward sharp move is possible.
Daily Chart Activity of Bitcoin Price
Over the daily chart, the Bitcoin crypto has been teased for a bullish rally from the $53489 support level.
When writing, the BTC had already neared the 20-day EMA band. The volume has surged by 40%, amounting to a $33.78 Billion inflow in 24 hours.
A further surge in volume could lead its price to pierce the 20-day EMA band and the nearby 50-day EMA band. However, the long-term bullishness in the Bitcoin price could be more confident when it sustains above the 200-day EMA band.
At press time, the MACD is about to converge, as the histogram indicates reduced bearish pressure. After piercing the median line along the way, RSI has already pierced the 14-SMA and aimed for overbought territory.
The resistance to monitor will be at $60,278 and 66,150, followed by the supports at $53,489 and $51,476.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
