Key Points
- Bitcoin is experiencing a slight recovery with its price currently at $63,111, a 4% increase from the previous day.
- Long-term holders are increasing their Bitcoin holdings, viewing the current low prices as a buying opportunity.
Bitcoin’s price is showing signs of recovery, with a slight increase from its previous value. It was barely holding onto $60,000 yesterday, but it is currently valued at $63,111, which is a 4% increase on the daily chart.
The question remains, what is causing this small surge and will it maintain its momentum? Data from Coinglass shows that Bitcoin is the most liquidated asset over the past day, with over $36 million gone, primarily from Binance.
Bitcoin’s Resilience
Despite the liquidation, Bitcoin is still in the green and its price is increasing. Coinglass data indicates that Bitcoin’s CME open interest has increased by over 3% in the last 24 hours. In addition, spot netflow has seen nearly $140 million over the same timeframe.
Another factor contributing to Bitcoin’s resilience is the U.S. economic data set to be released on May 14th. Decisions on interest rates have proven to be bullish for Bitcoin, especially since rate cuts are not expected anytime soon.
Long-term Holders Increasing Holdings
Long-term holders, or LTHs, are currently increasing their Bitcoin holdings after selling off earlier this year. They see the current low Bitcoin prices as an opportunity to buy more coins at a bargain, with the intention of selling them when the market picks up.
Data suggests a recurring cycle from 2018 and 2021 where long-term holders buy during market lows and sell during highs. Despite these cycles, there is a noticeable trend where a majority of Bitcoin is being held by long-term holders.
TradingView data for the BTC/USDt pair shows a strong resistance level around the $68,000 mark, which Bitcoin has tested multiple times over the past month without a sustained breakthrough. On the other hand, a clear support level is near the $60,000 level.
The frequent and large price swings highlight the ongoing volatility in the Bitcoin market. This pattern suggests a trader’s market, where short-term gains can be captured based on swift movements.
At the latest data point, the price is experiencing another pullback towards the upward support level. This could be indicative of another potential buying opportunity if the pattern holds as previous instances suggest. However, the bears are still very much in control.
