Bitcoin Long-Term Holders Accumulating Like In 2021: Is BTC Ready For A 15X?
May 13 2024 - 4:00PM
NEWSBTC
Bitcoin is moving sideways, posting drab price action, forcing
participation to taper. But amid this consolidation and even fear
of more losses, one analyst has shared data suggesting that
long-term holders are accumulating at spot rates. Are We Back
To 2021? Bitcoin Long-Term Holders Accumulating In a post on X, the
analyst noted that this re-accumulating pace is picking
up momentum, mirroring a welcomed trend that preceded the
impressive 2021 bull run. Therefore, if long-term holders, or
HODLers, accumulate, the probability of BTC rallying in the
sessions ahead is elevated. Thus far, BTC has been trending above
$60,000, up 10% from the May 2024 lows. For clarity, the data
shared by the analyst uses Unspent Transaction Outputs (UTXOs) to
classify long-term and short-term holders. Analyzing the age of
UTXOs makes it easier to gauge the behavior of different investor
groups. Related Reading: Analyst Predicts Injective (INJ)
Breakout: $50 Price Range On The Horizon Usually, UTXOs older than
155 days have “diamond hands” or long-term holders. Meanwhile,
those who hold BTC for less than 155 days are short-term holders or
often classified as “weak” hands. They are usually traders or
speculators interested in riding on price volatility, like in the
first half of Q1 2024. When long-term holders stopped
distributing BTC in 2021, prices rose sharply. By November 2021,
the coin had peaked at around $70,000, lifting prices by nearly
1,500% from 2020 lows. It is unclear if BTC is ready for another
15X surge from spot rates, a move that would propel it to over
$700,000. BTC Has Strong Support At $60,000, Analyst Urges Patience
While the on-chain data paints a bullish picture, some
analysts advocate caution. Taking to X, one analyst notes that
Bitcoin has strong support at around the psychological $60,000
mark. The coin could stabilize if bulls soak in selling pressure
and reject attempts for lower lows. However, if prices dump below
$60,000, triggered by a news event, BTC may fall to as low as the
$52,000 to $55,000 zone. Despite the potential for short-term
volatility, the analyst encourages investors to maintain a
long-term perspective. Accumulating Bitcoin at these levels and
exercising patience could be a winning strategy, the analyst says.
Related Reading: DOGE Price Prediction – Can Dogecoin Bulls
Overcome This Hurdle? This preview would be especially true now
that on-chain data shows that long-term holders are
accumulating. Before then, traders should watch price action.
The coin is moving sideways, finding rejection at $66,000. Even
though prices are lower, the last day’s series of higher highs is
encouraging and might spark demand. Feature image from DALLE, chart
from TradingView
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