In April, long-term holders of Bitcoin (LTHs) experienced a significant increase in their capital as cryptocurrency prices surged. An analysis of the current market situation points to potential trends and corrections.
Capital growth of long-term holders in April
According to data from CryptoQuant, the total market cap of long-term holders of Bitcoin increased from $345 billion to $371 billion between April 1 and April 23, marking a $26 billion gain. The rise in Bitcoin price from $74,450 to $94,900 contributed to this increase.
Correction and its implications
Bitcoin experienced a correction of over 30% from January to early April, which aligns with historical market cycles. Similar downturns occurred in 2013, 2017, and 2021 after hitting all-time highs, often shaking out weaker holders before price recoveries. Long-term holders displayed confidence in the asset during this correction, despite pressure from traditional markets.
Outlook for Bitcoin Post-Price Surge
Analysts expect that after reaching $94,900, Bitcoin may undergo a consolidation period. Predictions suggest a possible dip to $91,000, with support seen in the range between $90,500 and $88,750. A breach below this range could push prices towards the next support area from $84,000 to $86,300.
April was a significant month for long-term holders of Bitcoin, allowing them to increase their capital amidst market volatility. The future of Bitcoin prices remains uncertain, with potential for both upward and corrective movements.
