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A recent Quicktake analysis on the bitcoin-demand-recovery-cryptoquant-head-explains/” rel=”nofollow”>CryptoQuant on-chain analytics platform highlighted how bitcoin-short-term-holder-cost-basis-rises-25300/” rel=”nofollow”>Short-Term bitcoin Holders (STH) The behavior is similar to that of 2019. This analysis occurs while bitcoin remains below $60,000, continuing the downtrend from September.
bitcoin short-term peak of holders is similar to the 2019 structure
CryptoQuant Contributor Avocado_onchain noted that there had been a “small spike” in unspent transaction outflows (UXTO) over six months, which resembles a similar structure seen in 2019. The analyst explained that these six-month UXTOs are new investors (or short-term holders) who entered the market around March of this year when the price of bitcoin hit an all-time high. bitcoin-breaks-through-69000-setting-new-record/” rel=”nofollow”>new all-time high (ATH).
According to the analyst, the declining proportion of these UXTOs suggests that these investors have either left the market due to bitcoin's volatile price action since March or have waited and have now transitioned to bitcoin-hodling-long-term-holder-supply-rising/#:~:text=The%20LTHs%20comprise%20one%20of,like%20a%20rally%20or%20crash.” rel=”nofollow”>long term holders (UTXO of six months or more).
The attached chart showed that a similar structure occurred around the halving event in 2019, when bitcoin also hit a local high. After that, bitcoin-golden-cross-history/” rel=”nofollow”>bitcoin Price cooled off and took almost 490 days to reach a new ATH, although Avocado_onchain noted that there was also the impact of the COVID-19 pandemic.
This development certainly provides an insight into what bitcoin investors might expect from the flagship cryptocurrency in the long term, even though its price remains volatile. Avocado_onchain commented that he is confident in bitcoin’s performance. bitcoin-bull-market-glassnode/” rel=”nofollow”>long-term upward trendIn the short term, however, he believes it will be prudent for investors to “temper expectations and keep a close eye on the market.”
Meanwhile, while the analyst admitted that there is no clear trigger for a bitcoin breakout, he noted that the influx of capital from new investors has historically been vital to bitcoin price increases. bitcoin hit a new ATH in March after the launch of the bitcoin-etfs-surges-with-massive-inflows/” rel=”nofollow”>bitcoin Spot ETFwhich introduced new money into the bitcoin ecosystem.
bitcoin appears to continue the September downtrend
bitcoin seems to continue its bitcoin-september-blues-will-the-top-crypto-defy-historical-downtrends/” rel=”nofollow”>September downtrend This year, the flagship cryptocurrency is already down more than 4% since the month began. Historically, September It is known that it is a bearish month, since data According to Coinglass, bitcoin has suffered monthly losses in six of the last seven Septembers, dating back to 2017.
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Following his x.com/jjcmoreno/status/1830736151872684090″ rel=”nofollow”>simulation bitcoin price for this month, CryptoQuant's Head of Research said, bitcoin-demand-behind-price-correction/” rel=”nofollow”>Julio Morenomentioned that on average, the flagship cryptocurrency could end the month at $55,000. Moreno had bitcoin–btc-headed-for-a-deeper-correction-56k-breakdown-could-spell-trouble/” rel=”nofollow”>mentioned above that a drop below $56,000 for bitcoin puts the cryptocurrency at risk of a deeper price correction and entering an extended bearish phase.
For now, the crypto community expects the US Federal Reserve to cut rates at its next FOMC meeting, which is scheduled for September 17-18. A rate cut is bitcoin-price/” rel=”nofollow”>believed be one that could skyrocket the price of bitcoin and lead to a successful breakout above $60,000.
At the time of writing, bitcoin is trading around $56,400, down more than 4% in the past 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
