On-Chain Data Hints Long-term Bitcoin Holders Increase Accumulation
After signaling a potential breakout above $70k, Bitcoin’s (BTC) price has reduced the midterm bullish sentiment in the past two weeks. Despite closing above the 50 and 200 daily Moving Averages (MA) in the past two weeks, the flagship coin has formed a potential reversal pattern.
Notably, Bitcoin price experienced a significant resistance level of around $68,400 in the last two weeks, thus forming a possible double top coupled with a bearish divergence on the Relative Strength Index (RSI).
A consistent close below $65,200 in the coming weeks will push the flagship coin towards the support level of around $60k. Moreover, $60k has been a solid support level in the past four months.
Long-term Bitcoin Holders Undeterred
According to on-chain data provided by Glassnode, long-term Bitcoin holders have gradually increased their accumulation rate in the past week. On Monday, they added more than 110,660 Bitcoins to their holdings.
Out of the 142k coins, Mt.Gox has distributed around 59k Bitcoins to creditors. Interestingly, on-chain data shows that most of the Mt.Gox holders have opted to hold their coins.
Despite the continued cash outflows from Grayscale’s GBTC, BlackRock’s IBIT registered more than $205 million in net cash inflows on Monday, thus holding a total of $23 billion.
Market Picture
The adoption of Bitcoin has so far encompassed institutional investors after millions of retail traders accepted it over the years. Nation states are expected to begin entering the Bitcoin market to follow El Salvador’s example.
Already, if elected later this year, Donald Trump has pledged to make the United States a crypto leader. Meanwhile, Russia and China are expected to follow a similar path of legalizing crypto use soon.
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