Despite recent price fluctuations in Bitcoin, CryptoQuant analyst Avocado_onchain confidently asserts that the current consolidation may signify future upward trends.
Market Under Pressure
Last week, Bitcoin faced increased volatility due to escalating tensions in the Middle East. The situation worsened following U.S. strikes on suspected nuclear facilities in Iran, leading to Bitcoin's price falling below $100,000. As reported by *CryptoPotato*, this attack resulted in about $700 million in leveraged positions being wiped out. During this crisis, many altcoins, including Ethereum and Solana, also lost value.
Long-Term Holders and Their Strategy
Analysis from CryptoQuant indicates that long-term holders (LTHs) continue to accumulate Bitcoin rather than sell amidst the current market instability. According to the 30-day moving average of the Coin Days Destroyed (CDD) metric, which tracks when long-held coins move, a drop below the 0.8 threshold was noted, indicating experienced investors are not rushing to sell.
> "This moderation below 0.8 still implies that the market may be entering a consolidation period, and further price or time correction could follow," noted Avocado_onchain.
Current Price Situation for Bitcoin
Data indicates that ETF purchases of Bitcoin have significantly slowed, from 9,700 BTC per day on April 23 to around 3,300 BTC as of June 22. Additionally, accumulation by large investors has also halved, showcasing a tightening in demand. Amidst this backdrop, BTC remains well above $100,000, though it has experienced a 4.9% loss over the past week, reflecting the ongoing market struggles. However, Bitcoin is outperforming the broader crypto market, suggesting underlying support might be building despite the slowdown in short-term demand.
Overall, the current market situation for Bitcoin shows signs of consolidation and accumulation from long-term holders, potentially foreshadowing upcoming bullish moves. It will be essential to monitor developments, especially amid the prevailing uncertainty.
