Once again, Bitcoin couldn’t hold the $20,000 price level for more than a few hours last week, dropping below $19,000 once again on Tuesday. That’s not good news for investors, but according to experts, it comes with a silver lining. Markets were green for a while on September 27, but eventually the positive momentum eroded, leading to a slip back below $19,000 for Bitcoin.
This has been happening since March. Bitcoin seems unable to hold resistance levels or go above them for a few hours, and the September 27 breakdown continues the negative bearish trend. However, according to experts, BTC investors are holding ground rather than selling, and that’s a great thing.
Data from Arcane Research showed that the brief rally that turned the market green on September 27 was insignificant. Futures premiums are still low, and such rallies do nothing to improve the risk market appetite. Funding rates are currently flipping neutral for the first time in a couple of weeks. However, traders are not interested in adding longs due to macro challenging concerns and hostile crypto regulation.
On the positive side, the data also showed that Bitcoin is trading in the same range ($24,300-$17,600) as for the past 100+ days. On-chain analytics provider Glassnode noted that mature investors are willing to hold their ground instead of selling. Those massive sellouts were a big problem for Bitcoin’s price this year, so it’s good that they’re holding onto their coins.
The 1+ Years metric shows that the total amount of coins that have come back in circulation after being untouched for a year is low. It suggests that long-term holders are pretty accustomed to the volatility and against selling at current prices. Investors fully expect prices to drop down to $12,000 or lower, so the actual lack of panic selling is a major positive.
The Dollar Not Quite Topped Out
The US Dollar has plenty of room to grow still, which is a bit of bad news for Bitcoin traders. That Bitcoin pump we’re all expecting couldn’t come sooner, but according to some analysts, it would be wise to pay attention to the USD as well if you’re leveraging BTC. The Dollar has been on the rise for the past week, and the run may not be over yet.
It’ll most likely lead to more pumps on the USD and BTC setbacks. At least in the short run, because no one knows how long the USD rally will hold. The British Pound is almost equal with the US Dollar, which has left the Euro in the dust. It’s great news for the US government, but not so great for the crypto community with prices still reeling from last year’s crash.
Looking into the future, it’s fair to say that no major movements are expected at least until the new year. It remains to be seen if next year will bring a wind of change, or we’re in for a few crypto winters.