Bitcoin traders don’t expect new highs until the 200-MA becomes support

Bitcoin short-term holders will be ‘seriously tested’ if BTC loses $61.6K – Analyst

Bitcoin price oscillates in a narrow price range as BTC’s low volatility hints at a sharp price move around the corner.

Bollinger Bands (BB) suggest that the current price may be slightly oversold, as it is trading below the indicator’s simple moving average (the middle band). However, the BB lines are currently diverging, indicating that the price action is likely to experience short-term volatility. This divergence could lead to significant price movements in either direction, so traders should be cautious and consider monitoring for potential breakout opportunities.

Bitcoin under $61,600 may test STH’s resolve, says Analyst

Bitcoin investors can be categorized into short-term holders (STH) and long-term holders (LTH), each playing a vital role in the market dynamics. Long-term holders are defined as BTC addresses that have held Bitcoin for 155 days or more, while short-term holders consist of traders who have held their Bitcoin for less than that period.

Recently, Cointelegraph reported that short-term holders appear to be taking on more risk, as evidenced by a sharp increase in the realized price for BTC among this group. This trend coincides with long-term holders likely taking profits toward the end of September. Consequently, the immediate price action of Bitcoin may be more influenced by short-term holders at this time.

In this context, Burak Kesmeci, a Verified Analyst on CryptoQuant, warns that short-term holders may engage in panic selling if Bitcoin’s price drops below $61,600. This potential reaction underscores the sensitivity of the market to short-term holder sentiment and the risk of increased volatility if prices decline significantly.

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