Bitcoin has been in a swing position for more than two months based on its stagnation in the $ 30 to $ 40,000 range. This situation was caused by the low volatility and the increased crackdown on crypto mining by the Chinese authorities.
The battle between long-term and short-term owners has also contributed to their conflicting positions in the BTC market. For example, as long-term BTC holders continued to pile up, their short-term counterparts continued to sell, creating a stalemate.
On-chain analyst Will Clemente believes that Bitcoin is moving into strong hands as its supply shock is at a level of $ 50 to $ 60,000.
Strong hands are investors who indulge in an asset for purposes other than speculation. Smallholders are an emerging force. To to the crypto analyst Willy Woo:
“Bitcoin continues a 12 year trend of even distribution. Small owners are an aspiring force. “
Hence, smallholder farmers cannot be ignored as they sold 428,749 BTC in May, and this is one of the reasons Bitcoin crashed from a record high of $ 64.8,000 in mid-April. In addition, on May 19, BTC lost 30% of its value in a single day, falling below the 200-day MA indicator for the first time since March last year.
Bitcoin’s near-term interest declined 43% from an all-time high (ATH) in February, causing low volatility in the market.
As a result, the crypto trading volume on the exchanges fell more than 40% in June. For example, the spot trading volume decreased 42.7% to $ 2.7 trillion, while the derivatives volume decreased 40.7% to $ 3.2 trillion.
With Bitcoin returning to strong hands, it remains to be seen whether this will boost the top Cryptocurrency back to winning ways.
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