Bitcoin has been doing really well this week, with prices shooting up by over 10%. And with this price jump, some interesting things are happening in the market that might keep the momentum going.
A Shift in Bitcoin’s Supply: More People Are Holding Long-Term, New Buyers Are Joining
Axel Adler Jr., a well-known crypto expert, shared some cool updates on what’s happening with Bitcoin. He pointed out something important using data from CryptoQuant.
Between April 4 and April 21, the amount of Bitcoin owned by short-term holders dropped by 359,000 BTC — which is worth a huge $33.84 billion. But here’s the interesting part: it wasn’t because people were selling. The coins actually matured, meaning they switched from short-term holders to long-term holders.
That’s a good thing! It shows that people are confident in holding Bitcoin for the long haul, rather than selling quickly. We’ve seen this before. Back in 2020, when more long-term holders came in, Bitcoin jumped from $20K to $60K in a few months.
But that’s not all.
After the recent price jump, Axel also noticed that short-term holders added 70,000 BTC in just two days. That’s around $6.59 billion worth of Bitcoin. This happened because some long-term holders sold to take profits while prices went up, and new buyers came in and bought up those coins.
What’s really important here is that new buyers are stepping in and taking those coins without causing the price to drop. In fact, Bitcoin is holding above $92,200, which is the average price that short-term holders paid for their Bitcoin. This shows there’s still plenty of demand in the market.
Bitcoin’s Market Looks Healthy
To sum it up, more and more people are holding Bitcoin for the long term, the extra coins are getting bought up quickly, and Bitcoin is staying above key levels. All these signs suggest a strong market.
It reminds me of what happened in early 2021, when Bitcoin kept going up after bouncing off key price points.
Where Bitcoin Stands Now
Right now, Bitcoin is trading at around $94,408, down by 0.78% in the last 24 hours. Trading volume has dropped by about 55%, meaning fewer people are buying and selling Bitcoin at the moment.
But even with lower trading activity, Bitcoin is still doing well. It’s broken through the major resistance level at $91,000, which is a good sign. Plus, Bitcoin ETFs (Exchange-Traded Funds) have seen about $3.06 billion in new investments over the past week.
The next resistance point is $96,000. If Bitcoin can break through that, we could see it hit $100,000 soon. But if it gets stuck, we might see it fall back to $92,000 and trade sideways for a while.
Either way, Bitcoin looks like it’s in a strong position to keep going up.
The post Bitcoin is Looking Strong: Long-Term Holders Are Sticking Around, and New Buyers Are Jumping In appeared first on The Cryptoplay : All updates about Cryptocurrency worldwide.
