Originally published on: October 10, 2024
Bitcoin holders are currently experiencing a period of stagnation, with traders eagerly awaiting a breakout from the low $60,000 range to kickstart activity, according to a leading crypto analyst.
James Check, the lead analyst at Glassnode, expressed in an October 9 post the need for a new price range to stimulate supply in the market. He highlighted that Bitcoin’s sell-side risk ratio is currently residing in a zone of low liquidity, signifying a lack of significant trading activity.
Check noted that most onchain Bitcoin movements are not resulting in substantial profits or losses, indicating that seasoned traders are waiting on the sidelines for clearer price signals before making any significant moves.
For traders feeling unsure about the current market conditions, Daan Crypto Trades recommended waiting for confirmation before taking any action, as the market could swing in either direction.
Check observed that long-term holders, or “old hands,” who have maintained their Bitcoin holdings for more than 155 days, are holding onto their coins without much movement. In contrast, short-term holders are currently facing unrealized losses against Bitcoin’s current price, with their average purchase price sitting at $62,426.
Despite the current consolidation phase, some analysts believe that Bitcoin is poised for a breakout in the near future. Ash Crypto pointed out that Bitcoin recently broke out of a falling wedge pattern in the weekly timeframe, potentially signaling a bounce from the current retesting phase.
Another investor, Mike Alfred, dismissed the current price fluctuations below $73,500 as mere noise in the market, likening it to loose change in a washing machine.
While these insights offer valuable perspectives on the current Bitcoin landscape, it’s essential to remember that all investments involve risks, and readers should conduct thorough research before making any financial decisions.
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