Bitcoin Finds Support Above $27,000 as Long-Term Holders Buy into Sell-Off
Bitcoin has managed to maintain support above the $27,000 level, thanks to long-term holders who are taking advantage of a sell-off by short-term holders, according to an analyst. While most major cryptocurrencies experienced a slight increase in the past 24 hours, the market rally has slowed down compared to earlier in the week when bitcoin reached a high of $28,500. Adam Mourad, a CryptoQuant analyst, explained that long-term bitcoin holders are buying into the recent sell-off by short-term holders, creating a support level at $27,100.
Increase in Long-Term Holder Support
Mourad highlighted that the supply held by long-term holders currently stands at 15.6 million bitcoins. In contrast, the supply held by short-term holders is at its lowest level since November 2015, with only 3.8 million bitcoins. This increase in support from long-term holders suggests their belief in the enduring value of bitcoin as a digital asset.
Exchange Reserves Decrease
The decrease in exchange reserves is another indication of long-term holder support for bitcoin. On-chain data from CryptoQuant reveals that almost 12,400 bitcoins have been removed from cryptocurrency exchanges since the beginning of this week. This suggests that there is a sentiment among long-term holders to move their assets to cold wallets and hold onto them for the long term.
Short-Term Holder Profit and Loss
The analysis also considers the profit and loss metric of short-term holders. According to Mourad, this cohort mostly sold their bitcoins at a profit when prices surged to $28,500 earlier in the week. Short-term holders took advantage of the upward momentum to secure profits or limit their losses.
The Current Price of Bitcoin
As of 12:35 p.m. ET, the price of bitcoin is $27,898, reflecting a 1.3% increase in the past 24 hours, according to CoinGecko.
Hot Take: Long-Term Holders Drive Bitcoin’s Stability
The recent sell-off by short-term holders in the bitcoin market has been counterbalanced by the support from long-term holders. This dynamic has helped maintain the price above the $27,000 level and demonstrates the confidence that long-term holders have in the value of bitcoin as a digital asset. The decrease in exchange reserves and the movement of bitcoins to cold wallets further reinforce this sentiment. While short-term holders take advantage of price surges to secure profits, long-term holders continue to accumulate and hodl their bitcoins for the long run. This interplay between different types of holders contributes to the stability and resilience of bitcoin.
By
By
By
By
By