Bitcoin is at a decisive point in retesting the long-term resistance
Bitcoin (BTC) is currently sitting at a crucial decisive spot as it retests the long-term bearish resistance for the first time since last April. The asset has been trading underneath the long-term trend line resistance since falling below it in Nov. 2021, and all attempts to eclipse it have been met with fierce opposition.
BTC is currently sitting in a delicate position
Bitcoin’s drop from the all-time high of November 2021 resulted in a long-term trend line resistance that has kept the asset at the mercy of the bears since then. The asset retested the trend line as it surged to $47,300 last April but quickly faced stern opposition. After the humbling account, BTC is once again retesting the trend line.
The asset is currently sitting at a delicate position above the trend line, per data from a CryptoQuant report. The analysts suggest that a break above the current position could signal an end to the current downtrend. Still, if the bears batter the asset below this point, the markets could witness an extension of the bearish momentum.
At this critical point, miners and short-term holders are involved in selloffs which would put more pressure on the asset’s price movements. With a last value of -0.50, the Miners’ Position Index (MPI) reveals that miners are moderately selling off their holdings to capitalize on the recent price increase.
Additionally, the short-term holders’ SOPR on the 7-day SMA is gradually increasing, indicating that short-term holders are raking in profits, which translates to a wave of selloffs. Moreover, while long-term holders are not selling off their bags, they have not embarked on an accumulation campaign either. Reserves on banks and exchanges have also decreased.
Investors continue to HODL
Meanwhile, Glassnode data reveals a general increase in HODLed coins among BTC investors. The number of HODLed or lost coins hit a 5-year peak of 7,565,383 BTC today. In addition, the amount of BTC tokens in supply last active within 7 days increased to 480,575 BTC, a figure last seen in December 2022.
The Binary Coin Days Destroyed (CDD) ratio also reveals a low long-term holders’ movement. These metrics indicate that confidence in the asset remains strong, as investors continue to hold their bags in anticipation of an end to the prevalent downtrend.
Amid these mixed signals, seasoned analyst Crypto Tony believes a dip to $21,600 could very well be bitcoin’s launchpad to new highs. According to him, if the asset falls to $21,600, its next destination could be $25,300.
Meanwhile, with a meager increase of 0.26% since the start of the day, BTC is currently trading at $22,767, facing opposition at the intra-day high of $22,826. The asset is currently up 9.18% in the past 7 days and 37.6% since the start of the year.
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