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Bitcoin deepens decline and nears its profit-taking support zone

Despite strong earnings and equally strong corrections in 2021, those who entered the market or added to their positions on or after November 2020 are refusing to sell. Hodl Waves, which tracks the age distribution of unspent transaction outputs (UTXO), shows that the supply controlled by those six to 12 month “hodlers” has increased, from 8.7% in early June to 21, 4% from November. 17.

At the same time, coins held for several years have declined only slightly, highlighting that modest sales have been made and that, with the exception of the six to 12 month group, investor resolve remains strong. The data underscore the theory that Few BTC owners intend to sell at current prices, even as these surround all-time highs.

However, as Cointelegraph reported, the distribution of coins by long-term holders, a classic feature of the peak phases of the bull market, has now begun. The last time this happened was also in November of last year. Meanwhile, more numbers that track “older” BTC also hint that lBitcoin’s oldest hands will remain quiet.

As on-chain analyst William Clemente noted this week, latency flow (Bitcoin’s market cap divided by annualized latency) remains low near the all-time highs for BTC / USD.

The high latency, Clemente explained, indicates that older coins are being spent. “Seeing the idle flow currently so low means that older coins remain relatively dormant,” he added in comments on Twitter on Wednesday.

For the moment, Support at $ 57,800 was not tested, as the market recovered $ 60,000 after landing at $ 58,500. Strong market hands contributed to Tuesday’s short-term rebound. Nevertheless, Technical indicators suggest that Bitcoin is not out of the woods yet, as a drop to $ 57,000 is possible. “A breakout of this level could point to a deeper drop, and attention could shift back to the $ 50,000 region, but as is always the case with bitcoin, that’s never clear,” said Craig Erlam, analyst at Onda. . “The extreme volatility that the market is prone to could cause a possible domino effect if more negative news emerges that takes prices to new lows,” commented XTB experts.

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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