Despite the so-called “crypto winter,” a recent study has shown that 62% of all Bitcoin addresses have not sold any of their BTC in at least a year. This is an interesting statistic, especially given the current market conditions. Many people are holding on to their Bitcoin, even though the price has been dropping for months.
TipRanks revealed that only 32% of Bitcoin addresses are ‘active,’ meaning that they have sold some BTC in the past year. This leaves 62% of addresses that have not moved their BTC in over 12 months. The recent report highlights that Bitcoin selling pressure is subsiding, as further highlighted by an asset’s crypto exchange deposits under the seven-day moving average plunging to a two-year low.
With most Bitcoin addresses not selling their BTC, it seems that many people are still bullish on the future of Bitcoin, even amid a bear market. Only time will tell if this trend continues or if more people begin to sell as the market continues to decline. Either way, it is an interesting perspective on current market conditions.
Bitcoin 1 Month Price Analysis
The August candle has closed, this is a strong bearish candle with volume surpassing the whole of July, showing that the sellers are still dominant, but the overall trend is still down.
The price of the August candle closed above the support level of $19,943. However, the September candle is tending to retest the support of $19,943, if this support is broken, $19,794 and $18,800 will be the next two support levels. Resistance on the 1M chart would be the $24,681 – $25,205 zone.
Bitcoin 1 Week Price Analysis
The weekly candle is hovering at $20,000 and the candle shape is also quite bad because of its long beard, which means all attempts to increase the price have failed, and this candle is likely to form a bearish pin bar.
If this week’s candle (August 29 – September 4) closes above the $19,943 support, we could continue to see the bulls try to push the price further. Resistance to watch out for on the 1W chart is $20,800 – $21,548.
If the weekly candle closes below $19,943 or, even worse, $19,794, a bearish pin bar will be formed, which will be a very bad sign for the bulls, the next Support level will still be at $18,800.
BTC 1 Day Price Analysis
The price is at the confluence of the $19,943 support and the downtrend line. What to expect is an upward breakout to approach the $20,800 – $21,548 resistance. However, the possibility of the price going sideways is possible because the trading volume at the weekend is usually very low.
The general trend is still down, all efforts to increase the price will only be considered as a retracement, so at this point, finding setups to short will be more reasonable. Bitcoin’s future is uncertain, but it’s unclear how long investors will hold onto the asset, given that there was an extended crypto winter.
This month, investors appear to have pulled back from risky investments as they await more clarity on the Federal Reserve’s plans.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)