Bitcoin’s downtrend persists for two months, with long-term holders refraining from selling despite weakening bullish momentum since the all-time high.
The price of Bitcoin has been in a downtrend for the past two months, and supporters have weakened in their ability to sustain upside momentum. On-chain Bitcoin data indicates that long-term holders (LTH) are not selling now despite Bitcoin having reached an all-time high.
Axel Adler Jr., an on-chain analyst verified by CryptoQuant, published an important metric on X on May 11 that suggests long-term holders are still retaining their holdings. Macroeconomic concerns, including anticipations of a Fed rate cut, have hindered the complete recovery of the Bitcoin price.
According to a binary indicator, long-Term Spending by Holders (LTH) sold 1.3 million BTC when Bitcoin surpassed $73,000. Nevertheless, they are not abandoning their Bitcoin holdings at this time.
Intelligent investors aim to purchase Bitcoin at the local minimum. “They have a substantial amount of cash on hand, approximately 1.3 million BTC,” he continued.
Moreover, he considers the current period ideal for a significant correction to weed out all insincere cryptocurrency investors. Three significant profit-taking events occurred at levels 28K, 44K, and 72K for Short Term HOLDERS (STH). However, there was only a profound correction from August to September last year.
Significant events include the PPI, CPI, and Fed Chair Jerome Powell’s speech in May. Recent consumer sentiment data from the University of Michigan indicated a decline from 77.2 in April to 67.4 in May, the lowest level in six months and a figure that fell short of market expectations of 76.
In addition, inflation expectations for the coming year increase to 3.5%, the highest level in six months, up from 3.2% in April. The five-year inflation outlook increased from 3.0% to 3.1%.
The price of Bitcoin has risen by approximately 1% over the past twenty-four hours and is currently $61,6009.
Bitcoin declined from its recent peak of $63,446 due to its inability to maintain upward momentum following a breakout. Additionally, Ethereum and other altcoins declined by 2-4%. The recent decline casts doubt on the recovery of the cryptocurrency market later this year.
According to renowned analyst Rekt Capital, Altcoin Market Capitalization is currently maintaining support at $250 billion, positioning itself for a future ascent to the upside via the black path.
