Bitcoin price is at risk of falling to $23,000, but that appears not to bother large holders of the flagship digital asset who have been accumulating BTC at a very high rate.
Ali Martinez, BeInCrypto’s Global Head of News, citing on-chain data from Glassnode, noted that BTC lacks strong support below the $25,400 mark. He said the market could see a swift correction to around $23,000 if the price fell below the threshold.
ETF Influencing Bitcoin Price Action
Given that the asset is currently trading at $25,841, according to BeInCrypto data, the risk of breaking that support level is real. The extreme volatility of recent weeks further complicates matters.
Over the past month, BTC has witnessed a decline of 11.4%. In the last five days, the premier cryptocurrency oscillated from $25,000 to $28,000 and then back to $25,000.
This price turbulence can be largely attributed to developments related to spot Bitcoin ETFs. The announcement of Grayscale’s legal success led to a surge in BTC value, but optimism waned as the SEC postponed its decision on the pending ETF applications before it.
Market observers assert that the asset currently teeters on a precarious edge, with the dominance of either bullish or bearish sentiments poised to dictate its future trajectory. Blockchain analytical firm IntoTheBlock said:
“Bearish sentiment may trigger a rush to break even, adding to sell volume. However, If there is enough strong bullish momentum, for example, because of an ETF approval, Bitcoin could breeze through these roadblocks.”
Long-Term Holders Unbothered
Meanwhile, data from IntoTheBlock shows that addresses holding 0.1% of BTC supply or more added more than $1.5 billion worth of the asset within the last two weeks.
Large Bitcoin holders’ addresses, a key metric, have shown intriguing trends in the past month. The net flow has steadily increased after experiencing a decline in early August, hitting a low point on August 22. Notably, a significant surge in net flow was observed between August 28 and 29.
This period coincided with the SEC’s postponement of its decision regarding spot Bitcoin ETF applications, a time when the flagship cryptocurrency exhibited signs of exceptional volatility.
Additionally, Glassnode data shows that the supply of long-term holders is now very close to 15 million. By comparison, short-term holders currently hold around 2 million of the supply.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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