Bitcoin Bulls Gain Breathing Room As Long-Term Holder Activity Eases – Glassnode
May 24 2024 - 8:00PM
NEWSBTC
Bitcoin continues to dominate discussions, with its recent price
movements drawing particular attention. As the asset struggles to
reclaim its March all-time high of over $73,000, with recent
attempts peaking above $71,000 earlier this week, the price has
since receded to approximately $68,231 at the time of writing.
This retracement marks a 7.3% drop from its March peak, signifying
a volatile period for the cryptocurrency, influenced by various
underlying market factors. Related Reading: Bitcoin’s Network
Strengthens: Mining Difficulty And Hash Rate Spike Amid ETH ETF
Buzz Long-Term Holders Lessen Selling, What This Spell For BTC
Glassnode, a renowned market intelligence platform, highlights a
significant development in Bitcoin’s market behavior. According to
a recent analysis of the platform, there has been a notable decline
in the distribution pressure from Bitcoin’s long-term holders
(LTHs). Glassnode’s “Long-Term Holder Binary Spending Indicator”
tracks the sell-off activity of long-standing Bitcoin holders, and
its recent data points to a marked reduction in this group’s
selling pressure. Historically, when long-term holders reduce their
selling, it alleviates downward pressure on the price, potentially
giving rise to more bullish market conditions. Further insights
into Bitcoin’s price behavior come from prominent crypto analyst
RektCapital, who noted on social media platform X that Bitcoin
typically faces resistance at the range high post-Halving and
suggests a prolonged re-accumulation phase. As the crypto asset
trades just below $69,000, RektCapital discloses that Bitcoin might
only break out from its current re-accumulation range around 160
days post-Halving, projecting a significant breakout as late as
September 2024. This analysis is crucial as it sets expectations
for investors looking for signs of Bitcoin’s next big move. #BTC
Historically, Bitcoin has always rejected from the Range High on
the first attempt at a breakout after the Halving Moreover, history
suggests this Re-Accumulation should last much longer Bitcoin tends
to breakout from these Re-Accumulation Ranges only up to 160 days
after… https://t.co/Jw7FcQui2Q pic.twitter.com/beLdOPqZOi — Rekt
Capital (@rektcapital) May 24, 2024 Meanwhile, recent price action
from Bitcoin has led to substantial losses for some traders, with
Coinglass data showing about $41.68 million in liquidations for
Bitcoin long traders and $14.34 million for short traders over the
past 24 hours. Overall, the crypto market has seen total
liquidations amounting to $292.07 million during the same period,
affecting 78,874 traders. Upcoming Challenges For The Bitcoin
Market According to Greeks.Live, the imminent expiry of a
significant volume of Bitcoin and Ethereum options adds another
layer of complexity to the market’s immediate future. 21,000 BTC in
options are set to expire soon, with a Put Call Ratio of 0.88 and a
Maxpain point at $67,000, representing a notional value of $1.4
billion. Similarly, 350,000 ETH options are nearing expiration, and
their dynamics could influence the broader market due to their $1.3
billion notional value and a Put Call Ratio of 0.58. May 24 Options
Data 21,000 BTC options are about to expire with a Put Call Ratio
of 0.88, Maxpain point of $67,000 and notional value of $1.4
billion. 350,000 ETH options are about to expire with a Put Call
Ratio of 0.58, Maxpain point of $3,200 and notional value of $1.3…
pic.twitter.com/rftA9kBm4q — Greeks.live (@GreeksLive) 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 timeframe, which
is often used as protection against a decline in the asset’s price.
Related Reading: Bitcoin On The Verge? Analyst Breaks Down What A
$71,500 Weekly Candle Close Means For BTC Conversely, a call option
offers the right to buy under similar conditions and is typically
utilized in anticipation of a price increase. The Put Call Ratio is
a tool that helps gauge market sentiment, with a higher ratio
indicating a bearish outlook and a lower ratio suggesting bullish
conditions. Featured image created with DALL·E, Chart from
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