Bitcoin Rate May Remain In the Low Range For Quite Some Time – Glassnode
According to Glassnode’s analysis, the Bitcoin rate could remain in its current low range for quite some time.
Analyst UkuriaOC from Glassnode noted that there is “extreme demand” for Bitcoin at a price in the region of $20,000. He added that each psychological price level between $40,000 and $30,000 and $20,000 creates a new group of short-term holders (STH).
The fact is that most of the Bitcoin supply that new STH bought during the drawdown was not sold despite a significant price decrease. From late April to June, the price of BTC dropped 55% from $40,000 to $18,100, according to CoinGecko.
This leads to the conclusion that the new owners are either “less price sensitive” or simply care more about the fundamentals of Bitcoin than investment returns. And if these coins are held for more than 155 days, these investors will move into the status of “long-term holder (LTH)”, which confirms the guess about their neutral attitude towards the price of the crypto asset:
“It would be constructive to see these coins, held by STH at $40k-$50k, begin to mature to LTH status in the coming weeks, reinforcing this argument.”
In conclusion, Glassnode’s analyst notes that while “the worst of the capitulation may be behind us,” BTC could remain in a low range for some time as the underlying value for new coin buyers has deviated below the sale price for about 17 consecutive days.
Although recently former Goldman Sachs top manager and macro investor Raul Pal assumed that the cryptocurrency market could soon reverse the trend upwards as the money supply grows.