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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Breaking News

Breaking News

Glassnode: “Extreme demand” for BTC at $20K leads to new support levels

Glassnode: "Extreme demand" for BTC at $20K leads to new support levels
Photo by Karolina Grabowska/gold round coin on dollar bill Photo by Karolina Grabowska/gold round coin on dollar bill
Glassnode: "Extreme demand" for BTC at $20K leads to new support levels
Photo by Karolina Grabowska/gold round coin on dollar bill Photo by Karolina Grabowska/gold round coin on dollar bill

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The worst of the sell-off for BTC may be gone, according to Glassnode’s most recent study, but it will take time for the market to recover.

The “extreme” demand for Bitcoin (BTC) at the $20,000 price level seems to have pushed the coins back into the hands of investors who don’t care about price while generating a new realized price level.

UkuriaOC of Glassnode referred to “great demand” in the $20,000 area in the most recent edition of The Week OnChain Newsletter, which was released on Monday. He said each psychological price level from $40,000 to $30,000 to $20,000 produces a new set of short-term holders (STHs).

The Glassnode analyst pointed out that despite prices falling dramatically, a large portion of the supplies that new STHs purchased during that drop has remained unsold. Demand may be driven by customers who are less price-sensitive or who are more concerned with the fundamentals of Bitcoin than with financial rewards.

According to CoinGecko, the price of bitcoin dropped by 55% between late April and early June, from $40,000 to a low of roughly $18,100.

This shows the recently created STHs are price agnostic purchasers with more trust in Bitcoin, according to Glassnode, who also added that their conversion from short-term holding (STH) to a long-term holding (LTH), which does not sell for at least 155 days, will assist validate this:

This argument would be strengthened if the $40k–$50k level STH held coins began to develop to LTH rank during the following weeks.

Confirmed LTHs have secured approximately 400 days in a row of annual profitability during the current weak market, outperforming 30-day profitability.

This length is quite similar to what LTHs went through in the 2018 bear market. According to Glassnode, this shows that LTHs are locking in losses, which, assuming the prior claim is true, means that new purchasers have less price sensitivity than the cohort who sold, suggesting that they may end up being the newest LTHs.

The research also highlights how “extraordinary forced selling” from cryptocurrency firms combined with widespread liquidations and bankruptcies provided the ideal environment for a relief pump.

According to the report’s conclusion, even if the “worst of the capitulation may be over,” BTC may stay in this low range for some time because the cost base for new coin purchasers has only deviated below the realized price for around 17 days in a row. Low divergences between 248 and 575 days have previously been reported during bear cycles.

BTC is currently trading at $21,146 after declining 3.1 percent over the previous 24 hours.


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