BTC Holders Reduce Spending, Why Bitcoin Could Get More Rocket Fuel

2021-10-26 01:22

Bitcoin trends to the upside in the daily chart after experiencing some downside action during the weekend. As of press time, the benchmark crypto trades at $63,136 with a 3.8% profit in the 24-hour chart.

BTC recovers in the daily chart. Source: BTCUSD Tradingview

The rally has been driven by an increase in institutional demand as the first Bitcoin-linked Exchange Traded Funds (ETFs) in the U.S. have been rollout. Both products experienced a record in trading volume with ProShares’ product surpassing the launch of the Gold ETF by reaching $1 billion in less than 3 days.

$BITO just about at $1b in total volume today (curr $993m but trades still trickling in). Easily the biggest Day One of any ETF in terms of 'natural' volume. It also traded more than 99.5% of all ETFs (incl some bigs like $DIA, $ARKK, $SLV). It def defied our expectations.. pic.twitter.com/rWIPSAJboT

— Eric Balchunas (@EricBalchunas) October 19, 2021

This propelled the Chicago Mercantile Exchange (CME) Open Interest to the stratosphere setting a new all-time high of $5.44 billion for futures contracts, a report by Glassnode indicated. The CME OI has risen by over 265% in October 2021 alone, as seen in the chart below.

Related Reading | TA: Bitcoin Price Faces Hurdle, Why 100 SMA Is The Key

Source: Glassnode

The derivates market has been heating up across the board with the funding rates going positive as Bitcoin moves higher. This has triggered a FOMO effect which led to a correction as over-leverage traders were shaken out in the past days.

Bitcoin seems to be making quick recoveries and holding on to $60,000 as critical support, but as Glassnode noted an over-heated futures sector put the entire market at risk of further downside price action.

(…) funding rates remain at similar levels as observed just prior to the early September flush out. With futures open interest remaining near all-time highs, a risk of further downside to clear even more leverage does remain in play.

Bitcoin Investors Expect More Gains

In support of the current optimistic general sentiment in the crypto market, Glassnode noted a reduction in activity by long-term holders. These investors were taking profits for the past 2 weeks following a period of accumulation.

Related Reading | Is China Considering Lifting The Bitcoin Mining Ban? The NDRC Runs Public Survey

As the research firm explained, Bitcoin long-term holders (LTH) exhibited a typical behavior as BTC’s price entered price discovery. As the chart below shows, there seems to be an inverse correlation between the total BTC supply held by LTHs and the price of this cryptocurrency.

Source: Glassnode

Whenever there is a reduction in LTHs spending, the price of Bitcoin tends to the upside in a massive rally as seen in late January and early February 2021.

Related Reading | On-Chain Data Shows Surge In Stablecoins Supply Pouring Into Bitcoin

When combining the behavior of LTHs, already resuming their BTC accumulation, with that of Short-term holders (STH), Glassnode concluded that the overall sentiment is for Bitcoin to reach new highs:

(…) STHs have stopped spending during this correction. With LTH supply already starting to recover, the most likely interpretation is that the vast majority of coin holders are still expecting and waiting for higher prices.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

ChartEx (CHART) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -7.01 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0068349 (-100%)

chart bitcoin action press time weekend benchmark

chart bitcoin → Результатов: 126


Garbage ICOs wipeout might fuel bitcoin’s next bull run. Whales are on the move with 20k bitcoins shifted from exchanges

Quick wrap up of today’s BTC price action: Santa rally appears to have more fuel in its tank.   Bitcoin price keeps climbing higher, breaking couple of resistance levels.   BTC is enjoying chunky gains of 6% and is following a steep bullish trend line with support at $3,700 on the 2-hours chart.

2018-12-20 23:41


Ripple [XRP]: Will Support Hold or Are We Heading Downward?

A look at the Weekly chart of Ripple in logarithmic form, shows us that price has fallen from the high of January 2018 of around $3.2 to close to $0.3. There is some support in the $0.3 area, and it is worth noting that there was a bounce with strong volume in September (yellow arrow), […] Ripple [XRP]: Will Support Hold or Are We Heading Downward? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-12-15 16:19


Litecoin [LTC] – Will the Support Area Hold, or Is There Another Drop in Store?

A look at the logarithmic Weekly chart shows us that price has fallen all the way into the $20-$25 area of support created by the highs of 2014. There is a substantial amount of support here. If price were to break down below $20, the next level of support would be in the $3-$5 area, […] Litecoin [LTC] – Will the Support Area Hold, or Is There Another Drop in Store? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-12-13 16:34


Monero [XMR]: Is a Bounce in Store or Are We Heading for the Bottom?

A look at the weekly chart of Monero (XMR), shows that we broke the $75 level of support which had been holding since the beginning of the summer and is now heading lower. The two support areas to watch are the $25-30 area formed by the lows of July 2017 (less likely to hold), and […] Monero [XMR]: Is a Bounce in Store or Are We Heading for the Bottom? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-12-11 17:54