Crypto News- Bitcoin’s Price Support and Potential Future Trends

Crypto News- Bitcoin’s Summer Slump and Investor Behavior

Crypto News- Bitcoin investors who entered the market after the ETF launch are proving to be impatient, selling off during what’s been termed a sideways summer for the asset.

As Bitcoin’s price dropped back to $58,000 on Thursday, on-chain data revealed that a significant portion of the recent sell-off originated from investors who joined the market this year.

According to CryptoQuant’s Cauê Oliveira, around $2.4 billion worth of Bitcoin, held between three to six months, moved within the network during this decline. This surge in activity underscores recent spikes observed in market behavior.

The data supports a common theory among on-chain analysts: coins that have recently changed wallets are more susceptible to movement during periods of price volatility compared to those held for longer durations.

These entities could be considered ‘long-term’ holders, but their behavior resembles that of short-term investors, given their entry into the market earlier this year, Oliveira explained.

According to Oliveira, these buyers likely got caught up in the excitement surrounding the launch of Bitcoin spot ETFs in January. Despite initially attracting more than $13 billion in net inflows over their first two months, these funds, along with Bitcoin’s price, have since remained relatively stagnant.

In contrast, Oliveira pointed out that entities holding Bitcoin for more than a year haven’t shown significant signs of selling, indicating they have more resilience in coping with market downturns.

Bitcoin’s Price Dynamics and Market Sentiment

LookIntoBitcoin reports that Bitcoin’s short-term holder realized price currently stands at $64,614, approximately 10% above the current market price. This figure reflects the average entry price for recent market participants and provides insight into potential panic selling thresholds.

In mid-June, Bitcoin lost crucial support at this level, confirming CryptoQuant’s prediction of an 8% decline to $60,000.

Despite enduring sideways trading and notable volatility since March, Bitcoin has yet to retreat more than 20% from its peak of $73,400, demonstrating notable stability compared to past bull markets. Nevertheless, recent panic selling has prompted speculation among CryptoQuant analysts that the cryptocurrency’s next significant support level could be substantially lower than current levels.

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