Despite facing challenges in breaking out significantly from its $60,000 support level, Bitcoin’s price has seen intriguing shifts in sentiment among its enthusiasts, according to recent on-chain data. Even amidst ongoing price corrections, long-term holders have shown resilience. In the past week alone, approximately 15,917 BTC, valued at around $987 million, have been withdrawn from various cryptocurrency exchanges.
Recent analyses indicate that Bitcoin’s dip to $60,000 can be largely attributed to short-term holders. This group of traders exited their positions after Bitcoin underperformed in early October, intensifying the selling pressure. Interestingly, long-term holders have thrived in this scenario, capitalizing on the increased selling pressure to add more Bitcoin to their portfolios. Data from October 3 highlighted this shift, showing that the total Bitcoin balance across exchanges was 2.5825 million BTC. This period was marked by consistent BTC inflows to exchanges from September 28 to October 3, during which Bitcoin’s price fell from $66,230 to $60,047, a roughly 9.3% decline as many traders sold their holdings.
In a twist, long-term holders identified this influx of BTC into exchanges as a chance to bolster their investments. Consequently, the total Bitcoin balance on exchanges has steadily decreased since October 3, with 15,917 BTC withdrawn up until the present, bringing the exchange reserve to approximately 2.5667 million BTC.
This steady outflow is generally a positive sign for Bitcoin’s price outlook, as it reduces the amount available for sale. Despite retesting the $64,000 level on October 7, Bitcoin has reversed and is nearing the $60,000 support level once more. Currently trading at $60,912, Bitcoin has seen a 2.1% decline over the past 24 hours.
The actions of long-term holders and bullish investors, who continue to accumulate Bitcoin from exchanges, are critical in preventing further price declines. As they amass more Bitcoin, they help support the cryptocurrency’s price and mitigate the impacts of short-term market fluctuations.