bitcoin may have surged 20% after suffering a flash crash and surpassing $50,000 in early August. However, the coin remains within a tight range while there is excitement.
Looking at the events on the daily chart, bitcoin is now hovering between $57,000 and $63,000, stuck in a sideways movement even though traders are optimistic and expect prices to rise in the coming days.
As prices consolidate horizontally and bulls struggle to break above $63,000 and record new highs, on-chain data points to strength and confidence. While the stagnation has led to the formation of a narrow and even opaque range, Glassnode x.com/glassnode/status/1824082221931646992″ target=”_blank” rel=”noopener nofollow”>grades that the players are accumulating.
Looking at Glassnode’s Accumulation Trend (ATS) index for bitcoin, the figure recently rose to 1.0, the peak reading. This development means that there has been a strong shift back to accumulation, with large entities, mainly institutions and whales, steadily accumulating and taking advantage of the current low prices.
Previously, the ATS revealed widespread distribution, which impacted prices. Most importantly, when this occurred after prices peaked in March, there was a flood of supply across all wallets.
btc holders were more willing to get rid of their assets and take profits. This trend is x.com/glassnode/status/1823742466731721117″ target=”_blank” rel=”noopener nofollow”>reversingespecially as seen in the addresses controlled by bitcoin spot ETFs.
btc HODLers Enter as Speculators Leave: What's Next?
According to Glassnode, the entry of HODLers and large entities is a huge boost in confidence, as they are looking forward to what lies ahead. This interest is demonstrated by the fact that long-term holders (LTH) have added more than 300,000 btc in the last three months.
Furthermore, as can be seen from this article, an analyst… x.com/AxelAdlerJr/status/1823661030590861720″ target=”_blank” rel=”noopener nofollow”>observe that the ratio of long-term to short-term holders has increased by 8.7% over the past month. This increase shows that LTHs are holding more btc.
Amidst this, demand among short-term holders (or addresses that bought in the last 155 days) has been declining. As STH activity decreases, it translates into more stable price action, allowing LTH to double.
For now, traders have to wait for clear signals. While aggressive traders could buy the dip, more conservative traders might want to wait for a clear break above $63,000 before committing. Any rise could push prices into the multi-month resistance zone between $70,000 and $72,000.