- 71% of Bitcoin’s realized capitalization consists of long-term holders.
- Reducing selling pressure may not guarantee a surge in BTC’s price.
- BTC’s price fell below EMA lines, critical support at $29,075 holding.
In a recent tweet, Ki Young Ju, the CEO of CryptoQuant, shared an insightful observation about Bitcoin’s realized capitalization. He highlighted that an impressive 71% of the realized capitalization for BTC consists of coins that have not been moved for over 6 months. This statistic suggests that long-term Bitcoin holders exhibit a minimal inclination to sell, thereby exerting little pressure on the market leader.
In light of this, the CEO further emphasized that reducing selling pressure does not necessarily ensure a surge in BTC’s price. Nevertheless, he posited that it is improbable for the cryptocurrency to have already peaked in its current cycle.
The prevailing notion within the crypto industry that BTC has yet to reach its peak in this particular cycle holds, as evidenced by CoinMarketCap’s data indicating a 0.30% increase in the leading cryptocurrency’s value over the past 24 hours. This noteworthy daily performance propelled BTC’s price to $29,220.03 at the reporting time. However, it fell short of reversing BTC’s weekly performance into positive territory.
The BTC trading volume experienced a significant decrease of 25.88%, leading to an estimated total volume of $10,736,533,286 at the current moment. Additionally, the cryptocurrency was observed to be trading in proximity to its 24-hour high of $29,382.11, while its daily low hovered around $29,097.47.
BTC’s price experienced a technical downturn on Monday, falling below the 20-day and 50-day EMA lines. At present, it is still trading at this lower level. This has led to a critical support level at $29,075, which is currently holding. However, if BTC fails to maintain this support, there is a possibility of a further decline towards the next significant level at $28,000.
In contrast, should BTC successfully achieve a daily candle close above $29,075 today and tomorrow, it may seek to regain a position above the 50-day EMA line at $29,355.67. Sustained buying pressure can potentially propel BTC beyond the $30K mark. In such a scenario, the cryptocurrency would have a favorable trajectory towards reaching $31,800 in the subsequent weeks.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
