Is Bitcoin’s [BTC] recovery here to stay? This data indicates that…
- CryptoQuant’s latest research indicated that BTC long-term holders stayed loyal despite price fluctuations
- BTC’s market indicators painted a positive picture on the whole
Tuesday, 29 August could be considered as a good day for the cryptocurrency market at large. This was because the District of Columbia Court of Appeals ruled in favor of Grayscale and crushed the SEC’s logic for denying an ETF.
Most cryptocurrencies operated in the green at the time of writing, Bitcoin [BTC] included. At press time, the king of cryptocurrencies was exchanging hands at $27,655 and was trading 6.47% higher over the last 24 hours.
However, can BTC investors consider the price movement back on track for good?
Read Bitcoin’s [BTC] Price Prediction 2023-2024
It’s all about the sentiment
As per an analysis posted by CryptoQuant analyst Onchained, BTC institutional investors, individual traders, and long-standing holders displayed resilience during the recent price pullback. Furthermore, the CrytpoQuant analyst also stated the recent price shift highlighted the unwavering confidence that holders have in BTC.
This was because more than 20,000 BTCs were transferred from exchanges to cold wallets. Additionally, this move indicated an inclination of holders to retain their assets for the long haul. The analyst also called this move an attempt by investors to shield their invested capital from the ongoing market instability.
Source: CryptoQuant
This indicated that long-term holders were in it for the long run. However, retail investors too showed some interest. As of 29 August, BTC holders that held 0.1+ coins reached an all-time high of 12,286,836.
Although this update wouldn’t impact the price of the coin in a significant manner, it was a strong indication that retail investors were jumping on the Bitcoin bandwagon.
📈 #Bitcoin $BTC Number of Addresses Holding 0.01+ Coins just reached an ATH of 12,286,836
Previous ATH of 12,286,555 was observed on 28 August 2023
View metric:https://t.co/oyguxpaA2y pic.twitter.com/2xvwwdoDal
— glassnode alerts (@glassnodealerts) August 29, 2023
Where will BTC head from here?
At the time of writing, BTC was trading almost 6% higher than its opening price on 29 August. This was a good sign for holders in general considering BTC’s recent price plummet below $26,000. Additionally, a massive development in the Relative Strength Index (RSI) was also seen in the price chart.
How much are 1,10,100 BTCs worth today?
BTC’s RSI moved from the oversold value of 26 on Monday 28 August to stand at 49.79 at the time of writing. The rise in RSI indicated a reviving buying pressure from traders and investors in the market. Furthermore, the Awesome Oscillator (AO), although below the zero line, flashed green at press time.
Source: TradingView
However, a look at the Moving Average Convergence Divergence (MACD) didn’t move as quickly as the RSI. Although the RSI took off in swing, the MACD only managed to just have a bullish crossover albeit below the zero line.
While this was good news for holders at large, BTC investors may need to keep the buying pressure alive. Considering BTC’s slow price drop and sudden price surge, investors may still need to watch out for signs of a reversal. Traders should thus, move forward with caution.
