Bitcoin On-Chain Indicator Signals Panic Selling At Current Levels – Time To HODL?
November 02 2024 - 9:30AM
NEWSBTC
Bitcoin is showing resilience, holding firm above the $69,000 mark
after a slight pullback from recent local highs at $73,600.
Following weeks of bullish momentum and nearing its all-time high,
BTC has settled just below the critical $73,794 resistance, a key
level that, if surpassed, would push the cryptocurrency into price
discovery mode. According to data from CryptoQuant,
short-term holders are experiencing a net profit-to-loss of
negative 20 BTC, indicating a wave of panic selling among retail
investors. This type of behavior, often driven by fear,
uncertainty, and doubt (FUD), can precede a significant price surge
as stronger hands accumulate BTC at lower prices. Related Reading:
Analyst Exposes Ethereum Ascending Support At $2,400 – Best Chance
To Accumulate ETH? Historically, similar sell-offs by retail
investors have been followed by renewed upward momentum as
longer-term holders seize the opportunity to enter or reinforce
their positions. If Bitcoin can maintain support above $69,000, the
odds of a breakout past its all-time high increase
substantially. Market watchers are now closely monitoring the
resistance level, as surpassing it could trigger a wave of buying
interest and push BTC into new highs. The coming days may prove
crucial, setting the stage for Bitcoin’s next big move. Bitcoin
Weak Hands Selling Bitcoin recently attempted a breakthrough to new
heights but failed to breach its all-time high of $73,794, entering
a consolidation phase as the market eyes key events: next week’s
U.S. election and the Federal Reserve’s anticipated interest rate
decision. CryptoQuant’s recent data, shared by analyst Axel
Adler on X, points to a noteworthy trend among short-term BTC
holders. The net profit-to-loss ratio for these holders shows a
negative balance of -20 BTC, indicating a wave of panic selling
following Bitcoin’s struggle to establish new highs. This sell-off
among short-term investors, who tend to react more quickly to
market volatility, suggests some caution amid uncertainty. Adler
emphasizes that in such turbulent times, a long-term “HODL” (hold
on for dear life) approach can be the most beneficial strategy.
Holding strong through market noise has historically rewarded BTC
investors who keep their positions intact during periods of
retracement and heightened volatility. With Bitcoin’s
all-time high in sight, a successful breakout would likely signal
the beginning of a broad market bull run. The coming days are
critical as Bitcoin sits at a pivotal point in its cycle, balancing
between strong consolidation and the possibility of explosive
growth. Related Reading: Bitcoin Open Interest Reduced By
$2.1 Billion In 24 Hours – Time For Spot To Push The Price? The
influence of the Federal Reserve’s decision on interest rates,
paired with potential election outcomes, could create the market
conditions needed for BTC to push past its all-time high. If this
level is breached, it would not only affirm a bullish outlook for
BTC but likely set off a rally across the entire cryptocurrency
market. BTC Holding Above Key Support Bitcoin is currently
trading at $69,620 following a retrace from its recent high near
$73,600. Despite this pullback, bulls remain in control as BTC
holds firmly above the crucial $69,000 support level—a price point
that acted as resistance since late July. This level has now
transformed into strong support, bolstering bullish sentiment in
the market. If Bitcoin holds above $69,000, a renewed push above
all-time highs seems likely. Breaking this resistance would propel
BTC into uncharted territory, potentially sparking a fresh wave of
bullish momentum and price discovery. However, if the price dips
below this mark, it could signal a need for a more significant
correction to gather enough buying power for the next move up.
Related Reading: Dogwifhat (WIF) Prepares For A Bullish Breakout –
Analyst Sets $3 Target The $69,000 level serves as a key indicator
of market confidence, as losing it would imply that BTC might
temporarily seek lower support levels to attract new buyers and
stabilize before another attempt at new highs. For now, Bitcoin’s
price structure remains strong, and as long as this support holds,
the market anticipates further upside momentum in the coming days.
Bulls are closely watching this level, as it may define the next
phase of Bitcoin’s bull run. Featured image from Dall-E, chart from
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