Bitcoin has consistently made lower highs since June and a breakout before the fourth halving event appears unlikely.
The gloomy market condition has failed to deter long-term Bitcoin holders who are currently in possession of more than 75% of all existing BTC.
As per an analyst at the crypto analytics platform CryptoQuant, this level was last seen in October 2015.
The sentiment of long-term holders is important as they represent experienced market participants that have been through different phases of the market.
The analyst explained that these entities have lower spending behavior statistically and hence are touted as the “hodl’ers form the last resort” while providing strong support for the flagship crypto-asset.
Bitcoin is currently trapped in a bear market cycle, a breakout from which, at least in the near term, does not appear likely.
CryptoQuant’s chart depicted that the coins are shifting from younger, less experienced market participants, to long-term holders.
Bitcoin Realized Cap – UTXO. Source: CryptoQuant
Crypto experts have also expressed similar sentiments regarding the price action of bitcoin, which has been struggling below the key $20,000 psychological level for quite some time.
PlanB, for one, recently said that BTC may see a notable pump only after its next halving event, slated to take place in early 2024.
CryptoPotato earlier reported that low prices combined with high network hash rate and mining difficulty have ravaged the mining ecosystem.
However, Michaël van de Poppe, founder and CEO of trading firm Eight, is bullish on the asset.
Despite Bitcoin’s lack of volatility, van de Poppe predicted that it could “break out significantly” all the way to $30,000 “within two-three weeks.”
Chayanika has been working as financial journalist for five years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin
