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Long-term holders do not sell Bitcoin after $73K spike
Bitcoin price has been in a downtrend for 2 months and has failed to maintain the upward momentum as bulls have turned weak. Bitcoin on-chain data reveals long term holders (LTH) They are currently not selling past Bitcoin’s all-time high.
Long-Term Bitcoin Holders Remain Optimistic
CryptoQuant verified network analyst Axel Adler Jr, in an X post on May 11, shared a key network metric indicating that long-term holders are not currently holding their holdings. Bitcoin price has struggled to fully recover due to macroeconomic concerns such as Fed rate cut nervousness.
The long-term holder spending binary indicator showed that long-term holders (LTH) sold 1.3 million BTC as Bitcoin reached over $73,000. However, they are no longer selling their BTC holdings.
Smart money is trying to get into Bitcoin at the local bottom. “They currently have a lot of money, around 1.3 million BTC,” he added.
Furthermore, he believes it is the perfect time for a deep correction to filter out all non-serious crypto investors. Short-term (STH) holders had three major profit-taking events at the 28K, 44K and 72K levels, but there was only one deep correction in August-September last year.
May has important events next week, such as PPI, CPI and chairman of the Fed Jerome Powell speech. The recent Consumer sentiment data from the University of Michigan revealed a drop from 77.2 in April to 67.4 in May, the lowest level in six months and also failed to meet market expectations of 76. Furthermore, inflation expectations for next year rise to 3.5%, a maximum of six months, compared to 3.2% in April. Also the Five-year inflation outlook reached 3.1% from 3.0%.
Read too: Ripple CEO Brad Garlinghouse responds to SEC call, crypto predictions, next black swan
Is Bitcoin Price Aiming to Recover?
The US government’s budget surplus in April increased to $210 billion from $176.2 billion the previous year, driven by higher tax revenues that outpaced increased spending.
BTC Price has increased by almost 1% in the last 24 hours, with the price currently trading at $61.6009. Bitcoin fell from a high of $63,446 as it failed to sustain upward momentum following a recent breakout. Ethereum and other altcoins also fell 2-4%. The recent crash has raised doubts about the crypto market’s recovery later this year.
Altcoin market capitalization still holds $250 billion as support, positioning itself for future upward movement through the dark path, said popular analyst Rekt Capital.
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