After three consecutive weeks of a downtrend, Bitcoin began this week on a positive note with intraday prices testing the $40k mark. Indeed, BTC was able to surpass this level successfully as ittraded around the $41k mark. Notably, irrespective of the price fluctuations, investors have not given up on the king coin. In fact, some of them have continued to HODL.
With the current environment having its fair share of headwinds, analysis of Bitcoin market participants on-chain could provide insight into the sentiment and decisions of a ‘cohort of contrarian investors’. Glassnode’s latest newsletter, compiled on 19 April highlighted these narratives.
Over the last 5-months is a 50%+ correction that appears to have significantly reshuffled the ownership structure of BTC. As per the report,
“…a great many LTHs with coins above $50k appeared completely unfazed,’ whilst others have been totally shaken-out, at a historically significant rate.”
But the value zone remained concentrated between the $35k to $42k range.
Source: Glassnode
Typically, price “value” zones, areas with a large amount of trading activity, precede strong breakouts or breakdowns in price. Overall, the pattern of both profits and losses realized over the last 2.5 months suggested that investors continue to see the $35k to $42k range as a value zone for accumulation.
In addition, consider the volume profile of Bitcoin’s year-long price range. Currently, the midpoint indicated short-term support at $38,590. High-volume nodes around $32,000 and $50,000 define the most recent price range, which typically coincided with prolonged periods of accumulation or distribution.
Source: Glassnode
Despite an additional two months of sideways consolidation, a large proportion of the
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