The leading crypto Bitcoin (BTC) continues its relentless effort around $ 19,000. However, according to Santiment, the amount of Bitcoin in the hands of whales has been falling for 11 months. While some analysts argue that BTC has started a grounding process, others say that more pain awaits.
Bitcoin whales drastically reduce holdings
According to on-chain analytics firm Santiment, the scale of Bitcoin held by whales has been on the decline for 11 months. Inflation and global calm concerns dominate the market. Therefore, he states that addresses holding between 100 and 10,000 BTC have reduced the percentage of Bitcoin supply to a 29-month low. This category of addresses holds 45.72% of the supply, which is the lowest since April 4, 2020.
According to Glassnode data, cryptocurrencies that have been held for several months recorded the highest dormancy ever. Santiment notes that the total volume of Bitcoin ‘cryptocurrency days’ destroyed in the last 90 days has effectively reached an all-time low.
Has Bitcoin seen the base?
Koindeks.com As you follow, Bitcoin remained below $19,000 for most of the weekend despite a few short gains. BTC was trading above $19,080, up 0.77% in the last 24 hours. This comes after last week’s volatility, driven by the precious rate hikes by the Fed and other central banks, as well as the decline in economic indicators signaling a calm.
The crypto market has generally been under pressure. That’s why Santiment reported a surge in Bitcoin interest on social platforms over the weekend. He noted that in the midst of the top 100 cryptos, Bitcoin has been the subject of more than 26% of the discussions for the first time since mid-July. “Our backtesting shows that the 20% allocated to Bitcoin is positive for the division,” Santiment said.
Analyst alias The Root shared an analysis suggesting that Bitcoin will soon reach the bottom of the bear market. “The long-term holder cost base has just surpassed the short-term one,” the analyst said. The previous bear market bottoms occurred within days of the transition. Is it different this time?” shared in.
Crypto analyst Will Clemente also believes that Bitcoin likely started a grassroots process. In this context, the analyst makes the following statement:
After months of waiting, for only the fourth time ever, Bitcoin’s short-term hodl cost floor has fallen below its long-term hodl cost floor. This indicates a base process. The next cross to watch is a bullish cross of the short term above the long term.
“Bitcoin’s anemic performance is a beautiful thing”
Oanda’s market analyst Edward Moya says Bitcoin’s anemic performance shows that long-term holders of the coin are unaffected by continued market turbulence. The analyst notes that BTC, known for its high volatility, should significantly underperform in the equity market. For example, when the stock market is down 2%, it would be reasonable to expect Bitcoin to see a price correction of around 8% within the same day.
However, the relatively modest dips suggest that BTC is performing better than expected. Bitcoin continues to hover above the $18,000 “make it or die” reinforcements that the bulls are fighting to defend it. Scott Redler of T3 Trading Group speculated earlier this month that if the bulls lost the 2022 low of $17,600, Bitcoin would experience a rapid decline.
“Bitcoin capitulation coming soon”
Bitcoin is currently down 58% since the start of the year. So far, it has performed in line with other risk assets impacted by the Fed’s hawkish monetary policy. Analyst Tone Vays says that Bitcoin capitulation is imminent. Vays predicts an imminent surrender step for BTC. The analyst makes the following statement:
I still think a capitulation is very, very possible next week or the week after.
Looking at Bitcoin’s four-day chart, Vays notes that bears are still in control of the leading crypto. In this context, he uses the following terms:
Disaster-looking candle. Everything here is predicting the short case.
According to the analyst’s chart, Vays expects a Bitcoin correction up to the $15,000 price area. However, Vays says the correction will give Bitcoin bulls a “perfect opportunity”. In this regard, the analyst makes the following statement:
I think we’re going to go for a second MRI in a row. Then all the stars and the moon will align. We essentially have a monthly MRI purchase in Bitcoin. Next month we will have a monthly MRI purchase on the stock market. The weekly MRI retrieval won’t come after three weeks. So this one will line up just as well. That’s why we need to harmonize everything in early October. If we hit $14,000 or $15,000 in Bitcoin, it would be a perfect buying opportunity. Everything here will be compatible with MRI.