Bitcoin Holds the $17,000 Line Barely; On-Chain Data Shows the Bottom is Near

No big news but struggles for Bitcoin’s price this week. The largest cryptocurrency by market volume has been fighting to stay alive in the $17,000 zone, and it’s been doing pretty good. There have been mild cuts as investors are waiting to see the latest macroeconomic data. As the year comes to a close, it’s becoming pretty obvious that the big jump we’ve all been waiting for isn’t coming. At least for now. The new year is a whole new beginning that can bring markets back in the green.

Struggling to Stay Green

Bitcoin’s inability to climb back to $20,000 where it was for months is destroying the market. It is currently trading at just over $16,900 and trying to get a firm hold of the $17,000 level. Climbing back up to $20K seems impossible right now. It’s been dragging the whole market down, with most altcoins being in the red.

Macroeconomics certainly don’t help its case. The US Central Bank still has work to do in regards to inflation, while the European Central Bank just released a report saying Bitcoin is on the road to ‘irrelevance’. New investors aren’t that likely to pour money in, and those who already have money in crypto are waiting to see what happens on the macroeconomic front.

Who’s right and who’s wrong? Well, some investors seem to think that this is just a phase. If that’s the case, then we can’t wait for this phase to end. Bitcoin needs a jolt of energy, and once that happens, the whole market will light up like a Christmas tree. With Christmas just around the corner, we believe in miracles.

In reality, all crypto markets are trading lower than past week except for Solana. Litecoin and Dogecoin have dropped around 3%, with Shiba Inu and Cardano dropping over 1%. The global cryptocurrency market cap is still flat at around $855 billion. There were no major changes in the past day or so, and neither were there changes in the total trading volume.

Final Bottoming Stages?

On-chain analysis has proven that Bitcoin may be entering the final stages of the bottoming. In translation, the price may have reached its lowest point, which is a big reason for celebrations. This isn’t just the rambling of some expert out there. It’s a report compiled by Capriole Investments, which takes a look at five factors why this might happen.

Those five factors are miner capitulation, realized value, downdraw, mining electrical costs, and the record number of hodlers. The BTC price floor has been formed at $16,000, and it could be the lowest point before a jump back.

What’s most impressive among these five is the record number of hodlers. In the midst of a historic drawdown, Bitcoin hodlers are not ready to give up. At the moment, about 66% of Bitcoin’s supply is in the hands of long-time holders. For those unaware, long-time holders have had their supply on hold for over a year. As numbers pile up it becomes clear that Bitcoin might finally turn the page, and it’s been a long time coming.

Share this

Share This