 ▲ Bitcoin (BTC) |
Some have argued that Bitcoin (BTC) price trends should pay attention to the $65,000 support line. However, the current Bitcoin market appears to lack support from individual investors.
AMB Crypto, a media outlet specializing in digital assets, cited the market analysis results of analysts at CryptoQuant, a cryptocurrency analysis company, and said that the current cycle is different from previous cycles in that the market participation of short-term holders is low.
Meanwhile, the presence of short-term investors holding assets for less than three months for asset speculation purposes was considered a sign that the Bitcoin cycle had reached its peak.
The CryptoQuant analyst team shared data proving that the proportion of assets held by individual investors out of the current realized value of Bitcoin is 35%. In the previous cycle, the proportion of Bitcoin realized value held by individual investors was more than 70%.
The fact that the Spent Output Profit Ratio (SOPR) of individual Bitcoin investors has maintained a relatively low level also suggests that the speculative trend in the Bitcoin market has not reached its peak. The CryptoQuant analyst team interpreted that the Bitcoin market is currently in the early stages of a bull market, not the euphoria peak before a large-scale sell-off.
The trend of decreasing active Bitcoin addresses according to Glassnode, a cryptocurrency on-chain data analysis company, also provides a glimpse into the current market situation with few individual investors. Glassnode reported that the number of active Bitcoin wallets, which peaked at more than 1 million in March, fell to less than 800,000 last month.
In addition, the number of new Bitcoin wallets, estimated at over 500,000 as of last January, has now been confirmed to have decreased to less than 300,000.
Meanwhile, NewsBTC, a media outlet specializing in blockchain, diagnosed that Bitcoin's defense of the $64,515 support line will determine whether it will trend upward or downward in the short term.
NewsBTC explained that Bitcoin was trading below the 100-day simple moving average (SMA) after rejecting the $64.515 support line, but there is still a possibility of price rise. On the Bitcoin daily chart, strong bearish momentum was formed at the 100-day SMA, resulting in a short-term price retreat.
If Bitcoin succeeds in breaking through $64,515, it will begin an upward trend toward the $66,607 resistance line, and the resistance line may rise further to $71,909.
However, if bearish sentiment continues to exist and the $64,515 support cannot be defended, $60,158 could be tested as a new support level.
