Bitcoin (BTC) remained stuck in a narrow range on June 4 as trader demand for a new low macro remains.
Long-term educators begin ‘surrender’
Data from Cointelegraph Markets Pro and TradingView show that the BTC / USD pair remained stuck between $ 29,000 and $ 30,000 over the weekend.
The pair managed to bounce back to close to $ 31,000 the day before, but last week’s Wall Street’s final trading session put an end to the bulls’ efforts.
Because aftermarket markets had low volumes but little volatility, eyes were on the possible direction of an inevitable breakout.
“Bitcoin weekly chart is just awful so the trend is continuing. I think we are consolidating in this range for a little longer before it finally falls, ”Crypto Tony announced today in the frame of a series of tweets.
A another message reiterates a $ 22,000-24,000 target for bitcoin as soon as the projected decline comes in.
“I’m looking for another drop down to $ 24,000 – $ 22,000, but of course the distribution takes time. So maybe we’ll go around these areas of support before any reduction, ”he read.
Others predicted that they would make the most of the weakness ahead, including the popular Twitter account Cryptotoad, which announced an accumulated strategy at $ 27,000 and below in what would be the cornerstone for the BTC pair.
I do not know what you are going to do, but I plan to start accumulating my long position by swinging low 27k all the way down to the 0.382 fib at 21.5k.
– Cryptotoad (@ Mesawine1) June 4, 2022
$ BTC I do not know what you are going to do, but I plan to start accumulating my long position at $ 27,000 at the low level to the 0.382 fib line at $ 21.5,000. #btc #bitcoin pic.twitter.com/JCdHv0pMdr – Cryptotoad (@ Mesawine1) June 4, 2022
As Cointelegraph reported, other sources are closely watching bitcoin rates from chain analysts to well – known experts such as former BitMEX CEO Arthur Hayes.
To add fuel to the fire, data from the CryptoQuant chain analysis platform showed that long – term owners were starting to lose their reserves in a classic bear market.
“The capitalization phase for long – term hodlers has begun,” Edris Contribution Analyst summarized in one of the site’s QuickTake market updates, published on June 3rd.
Commenting on a chart of the retirement profit ratio (SOPR) of long-term holders, Edris made comparisons with conditions that preceded the generational lowlands in bitcoin history. These include the 2014 and 2018 bear markets, as well as the COVID-19 cross-over crash in March 2020.
“Currently, long-term holders are entering the capitation phase and selling at a loss, indicating that the smart money accumulation phase has begun, and that the coming months would provide an excellent long-term investment opportunity on the market,” an post. read.
He noted that such a surrender event occurs “usually on a multi-annual basis”.
Exchanges are still making big purchases
With a hint that some were already buying the dive, exchange data showed outflows that have significantly exceeded outflows over the past few days.
Read also: More than 200,000 BTC now stored in Bitcoin ETFs and other institutional products
According to chain analysis firm Glassnode, net flows from major exchanges on June 3 reached -23,286 BTC, the highest total since May 14.
Discussing the behavior of long-term owners earlier in the week in the latest issue of its newsletter, “The Week On-Chain,” chief analyst at Glassnode chain Checkmate revealed additional categories of at least investors interested in selling.
In particular, those who bought close to the all-time highs of November 2021 seem to be relatively price-insensitive, ”he wrote, adding that the investor profile was more than ever composed of these stubborn diggers. .
“Despite continued price reductions and a major spot liquidation event of more than 80,000 BTC, they still do not want to admit their BTC,” he said.
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