The directionless trading environment is causing a lot of impatience across the market, with traders forced to jump on FOMO pumps in little-known altcoins like LOOM, CREAM, and SXP. Meanwhile, Bitcoin (BTC) and Ethereum (ETH) continue to face the lowest spot trading liquidity in many years.
🗣️🤑 #Bitcoin‘s ratio of discussions compared to #altcoins has just hit a 3-month low as traders look elsewhere to #FOMO in on #crypto pumps. Smaller projects like $LOOM, $CREAM, and $SXP are seeing surges in chats, which typically indicates market greed. https://t.co/1WaB9rKRSp pic.twitter.com/tcIodzGPaf
— Santiment (@santimentfeed) September 25, 2023
According to CryptoQuant, an on-chain data analytics platform, Bitcoin’s spot trading volume has plummeted to a six-year low. Having understood that Bitcoin tends to move in cycles of four years due to the miner reward halving process, investors “are more interested in holding their coins, believing in their future value, than selling at the first sign of profit.”
Bitcoin Price Prediction: Price Hovers Above $26,000 – Long-Term Hodlers Unfazed
Bitcoin price bulls have all the reasons to defend support at $26,000, including the need to push for a trend reversal and avert a possible flash drop in search of liquidity at $25,000. It is not possible to predict the impact of a drop to the critical $25,000 support because any sign of weakness could send BTC spiraling to $22,000 or $20,000 if push comes to shove.
Ensuring support at $26,000 and subsequently the lower ascending trendline is paramount for the resumption of the uptrend. It will help bulls prepare to face the growing seller influence, considering BTC price sits below all the three applied moving averages.
The 50-day Exponential Moving Average (EMA) (red) and the 100-day EMA (blue) meet at around $26,500, forming a confluence resistance while the 200-day EMA (purple) could delay the uptrend at $26,600.
Traders are likely to be on the lookout for the Moving Average Convergence Divergence (MACD) to confirm a buy signal. As the blue MACD line crosses above the signal line in red, traders could seek new exposure to BTC longs which will contribute to building momentum.
Until Bitcoin rises above $27,500, it would be difficult to validate a longer uptrend, targeting highs above the next major resistance at $31,000. In other words, Bitcoin is in danger of affirming the bearish grip the longer it stays below $27,500.
Buying and selling of Bitcoin on spot exchanges has gone down significantly, contributing to the plague of scarce volatility. On-chain data analytics company, IntoTheBlock, revealed on Sunday that long-term holders currently account for 69% or 13.44 million BTC of the circulating supply.
Long-term holders prefer to endure the harsh crypto winter with the hope that a market turnaround will reward their patience. Although the crypto market is untradeable for most cryptos especially BTC, ETH, and other major altcoins, the halving in 2024 promises a resounding rally as has been the norm with historical four-year Bitcoin cycles.
Despite market turbulence, long-term ‘Hodlers’ are unfazed. Our latest data reveals a near-record 13.44M BTC held by long-term holders, making up 69% of the circulating supply. Historically, these holders sustain prices in bear markets and take profits in bull runs. pic.twitter.com/99OA9LfUjU
— IntoTheBlock (@intotheblock) September 24, 2023
MicroStrategy Buys More Bitcoin
The largest institutional holder of Bitcoin, MicroStrategy made headlines on Monday after making another massive purchase of 5,445 BTC for approximately $147.3 million. According to the company’s board chairman, MicroStrategy currently holds 158,245 BTC “acquired for $4.68 billion at an average price of $29,582 per Bitcoin.”
MicroStrategy has acquired an additional 5,445 BTC for ~$147.3 million at an average price of $27,053 per #bitcoin. As of 9/24/23 @MicroStrategy hodls 158,245 $BTC acquired for ~$4.68 billion at an average price of $29,582 per bitcoin. $MSTR https://t.co/GbJtUoQfXv
— Michael Saylor⚡️ (@saylor) September 25, 2023
There was little to no reaction from Bitcoin following the announcement, which could indicate an asset class that has matured or the lack of interest from retail investors who are known to be the market movers by capitalizing on such whale actions.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/bitcoin-price-prediction-as-spot-trading-volume-plunges-to-6-year-low-bullish-or-bearish/
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