bitcoin continues to dominate discussions, with its recent price movements attracting particular attention. As the asset struggles to reclaim its March all-time high of over $73,000, with recent attempts to peak above $71,000 earlier this week, the price has since retreated to around $68,231 at the time of writing this article.
This pullback marks a 7.3% drop from its March high, signifying a volatile period for the cryptocurrency, influenced by several underlying market factors.
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Long-term holders reduce sales, what is this spell for btc?
Glassnode, a renowned market intelligence platform, x.com/glassnode/status/1794002877205160373″ target=”_blank” rel=”nofollow”>reflexes a significant development in the behavior of the bitcoin market. According to a recent analysis of the platform, there has been a notable decrease in distribution pressure from long-term holders (LTH) of bitcoin.
Glassnode’s “Long-Term Holders Binary Spending Indicator” tracks the liquidation activity of long-term bitcoin holders, and its recent data points to a marked reduction in selling pressure from this group.
Historically, when long-term holders reduce their sales, downward pressure on the price is relieved, potentially leading to more bullish market conditions.
More insight into bitcoin price action comes from prominent crypto analyst RektCapital, who twitter.com/rektcapital/status/1793975954349404317?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>noted On social media platform
As the crypto asset trades just below $69,000, RektCapital reveals that bitcoin could only break out of its current reaccumulation range around 160 days after the Halving, projecting a significant breakout until September 2024. This analysis is crucial as it sets expectations for investors looking for signs of bitcoin's next big move.
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twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#btc
Historically, bitcoin has always rejected the High Range on the first breakout attempt after the Halving.
Furthermore, history suggests that this reaccumulation should last much longer.
bitcoin tends to exit these reaccumulation ranges only up to 160 days later… https://t.co/Jw7FcQui2Q pic.twitter.com/beLdOPqZOi
-Rekt Capital (@rektcapital) twitter.com/rektcapital/status/1793975954349404317?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>May 24, 2024
Meanwhile, bitcoin's recent price action has led to substantial losses for some traders, such as Coinglass. data showing around $41.68 million in liquidations for long bitcoin traders and $14.34 million for short traders in the last 24 hours.
Overall, the cryptocurrency market has seen total liquidations worth $292.07 million during the same period, affecting 78,874 traders.
Upcoming challenges for the bitcoin market
Accordingtwitter.com/GreeksLive/status/1793898486305550415?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”> Greeks.Live
Similarly, 350,000 eth options are about to expire and their dynamics could influence the broader market due to their face value of $1.3 billion and a bid-ask ratio of 0.58.
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May 24 Options Data
21,000 btc options are about to expire with a Put Call Ratio of 0.88, a Maxpain point of $67,000 and a notional value of $1.4 billion.
350,000 eth options are about to expire with a Put Call Ratio of 0.58, a Maxpain point of $3,200 and a notional value of $1.3… pic.twitter.com/rftA9kBm4q
– Griegos.live (@GreeksLive) twitter.com/GreeksLive/status/1793898486305550415?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>May 24, 2024
In this context, a put option gives the holder the right to sell an asset at a predetermined price within a specific time period, which is often used as protection against a drop in the asset's price.
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In contrast, a call option offers the right to buy on similar terms and is typically used in anticipation of a price increase. The Put Call Index is a tool that helps gauge market sentiment: a higher index indicates a bearish outlook and a lower index suggests bullish conditions.
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