As Bitcoin headed into 2022, a growing cohort of long-term investors doubled down on their stashes of cryptocurrency. Some industry watchers point to the underlying stability of such long-term investments as potentially promising indicators for the capricious cryptocurrency. Now, here’s the BTC hitting $100k question –
Is the capital support provided by the bulls be sufficient to keep the bears at bay?
The Bitcoin market is in a delicate equilibrium, with limited incoming demand, alongside a slowing sell-side, according to Glassnode’s March 7 newsletter.
Bitcoin’s price has traded within a volatile consolidation range this week. From recording a high of $45,039 to closing at around $39k, consolidation may perhaps even be an understatement.
Source:Glassnode
The same was highlighted by the attached graph, one picturing the price trading sideways as relative equilibrium prevailed.
But, here’s the caveat.
Given the current macro and geopolitical conflicts, Bitcoin bulls have attempted to set a price floor. As per Glassnode, bulls absorbed a “modest but persistent sell-side pressure for over two months, largely sourced from by short-term holder divestment.”
This is one of the reasons why the Bitcoin Fear & Greed Index remained in “fear” territory over the last three months.
This could leave Bitcoin vulnerable to volatility shocks.
“The limited incoming fresh demand could disrupt this delicate balance by any significant degree of seller exhaustion,” the report added. Or conversely, a re-invigoration of sellers.
Exchange inflows would give a better understanding of whether investors are preparing to liquidate or HODL their coins. There have been total net outflows of 46,000 BTC (worth around $1.8 billion at current prices) from all
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