Bitcoin is still struggling to break through the US$66,800 mark, hovering at US$65,137.46 as of now, showing a 0.5% decline in the last 24 hours. Despite intermittent efforts to surpass this level, the primary cryptocurrency has not displayed a consistent upward trend.
Similarly, major altcoins are exhibiting bearish signals. ETH is consolidating below the $3,620 resistance level, XRP has dropped below the $0.50 support, ADA is facing challenges to maintain above $0.40, and Solana is aiming to exceed $140.
A recent study by CryptoQuant has shed light on an intriguing observation: the lack of retail investors in the current Bitcoin market. Traditionally, peaks of excitement in past cycles have been accompanied by a surge in short-term holdings, indicating that long-term investors, often referred to as the ‘smart money’, have already cashed out, leaving the market in the hands of speculators and newcomers, leading to increased volatility.
However, in the current cycle, only about 35% of Bitcoin is held for less than three months, suggesting that we are still in the early stages of a bull market. Additionally, the profit realized by short-term holders, as measured by the SOPR index, has not reached previous cycle highs yet, implying that the market is still dominated by long-term investors, providing a strong foundation for price support.
This solid framework and the scarcity of short-term holders indicate that an abrupt shift to a bear market is improbable, leaving room for a substantial recovery before reaching the cycle’s peak. Ethereum wallets continue to demonstrate growth and accumulation, signaling sustained interest in the leading altcoin. This difference in portfolio activities highlights the current selling pressure on Bitcoin.
Cryptocurrency Market Update
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The opinions and views expressed by the author or individuals mentioned in this article are for informational purposes only and should not be considered as financial or investment advice. Trading or investing in cryptocurrencies comes with the risk of financial loss.
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