Although the price of Bitcoin briefly stayed at $28000, short-term holders of Bitcoin still insisted on supply. If this situation continues, the price of Bitcoin may break through this new resistance level
Although the price of Bitcoin briefly stayed at $28000, short-term holders of Bitcoin still insisted on supply. If this situation continues, the price of Bitcoin may break through this new resistance level.
- Although the BTC price has recently regained its price level of $28000, short-term holders have refused to sell.
- Although the return on tokens is below $27500, the accumulation remains stable.
The price of Bitcoin [BTC] briefly recovered to $28000 during the intraday trading session on October 5th, but it remains to be seen whether the token can rebound and break through this new resistance level.
According to CoinMarketCap data, as of the time of publication, the leading token trading price was $27491.
Short term holders are worth paying attention to
BTC Short Term Holders (STH) refer to a group of investors who hold tokens for less than 155 days. They are usually more price sensitive than long-term holders (LTH) because once the BTC price falls below its cost base, they can easily obtain and prepare to allocate tokens.
In a new article, analyst Tarekonchain, pseudonym CryptoQuant, evaluates the realized price of BTC - UTXO age range. This indicator has been proven useful in this regard as it describes the distribution pattern of tokens between STHs whenever the price of BTCs rises to the level at which they purchase tokens.
According to CryptoQuant's data, as of the time of publication, the actual price of BTC is higher than the current price of the currency, indicating that these investors are making profits.
However, as Tarekonchain pointed out:
So far, these groups have not seen a significant influx of Bitcoin into the market. This lack of activity indicates that these investors are holding their positions and avoiding large-scale selling
The analyst further added that if these investors "maintain their holdings of Bitcoin without transferring to the exchange, there is a high possibility of price increases." On the contrary, if the transfer increases, prices may soon fall
BTC daily chart
After the BTC price fell below $27500, its Chaikin Money Flow (CMF) attempted to break through the zero line during the trading session on October 5th, but resumed its downward trend.
As of the time of publication, the indicator returned a negative value of -0.05, indicating some weakness in the Bitcoin market. This indicates that a significant amount of liquidity has exited the market within the past 24 hours.
Nevertheless, the accumulation of coins remained stable. The relative strength index (RSI) and fund flow index (MFI) have values of 57.13 and 67.65, respectively, indicating this point.
However, as Tarekonchain pointed out:
So far, these groups have not seen a significant influx of Bitcoin into the market. This lack of activity indicates that these investors are holding their positions and avoiding large-scale selling
The analyst further added that if these investors "maintain their holdings of Bitcoin without transferring to the exchange, there is a high possibility of price increases." On the contrary, if the transfer increases, prices may soon fall
BTC daily chart
After the BTC price fell below $27500, its Chaikin Money Flow (CMF) attempted to break through the zero line during the trading session on October 5th, but resumed its downward trend.
As of the time of publication, the indicator returned a negative value of -0.05, indicating some weakness in the Bitcoin market. This indicates that a significant amount of liquidity has exited the market within the past 24 hours.
Nevertheless, the accumulation of coins remained stable. The relative strength index (RSI) and fund flow index (MFI) have values of 57.13 and 67.65, respectively, indicating this point.
In addition, from the Directional Motion Index (DMI) of Bitcoin, it can be seen that Bitcoin buyers still control the spot market of Bitcoin.
As of the time of publication, the positive indicator (green) 29.12 is above the negative indicator (red) 10.22. This indicates that the buyer's strength exceeds that of the seller.
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