Bitcoin’s future valuation has become a hot topic among traders and investors in light of a remarkable $8 billion trading volume influx. This surge has sparked a flurry of speculation – could this be the end of Bitcoin’s recent sell-off? Let’s explore potential Bitcoin price trajectories and discuss whether we are witnessing the conclusion of the cryptocurrency’s recent downturn.
Unprecedented Dormancy in Bitcoin’s Supply Indicates Strong Hodling Behavior Amid Market Volatility
Recent data from on-chain analytics firm Glassnode reveals a record-breaking level of inactivity in Bitcoin’s supply, with about 40.083% of the total Bitcoin supply being dormant for over three years. This marks an unprecedented event in the cryptocurrency’s history, suggesting that a substantial number of Bitcoin owners have held onto their assets, unfazed by the drastic price swings that are a hallmark of the Bitcoin market. Analysts frequently use the metric of supply dormancy to understand investor behavior and market sentiment. Elevated levels of dormancy usually signify a ‘hodling‘ behavior, which sees Bitcoin owners or ‘hodlers‘ retain their assets through market ups and downs, foreseeing a long-term increase in value.
📈 #Bitcoin $BTC Percent Supply Last Active 3+ Years just reached an ATH of 40.083%
View metric:https://t.co/ari6mxFMpi pic.twitter.com/s0SUujuXpu
— glassnode alerts (@glassnodealerts) May 14, 2023
Bitcoin Price Technical Analysis
Currently, Bitcoin holds a price tag of $26,800, and it has found a buffer at the $26,300 level, successfully halting its downward trajectory. The previous support level of $26,800 on the four-hour chart, once breached, now poses a potential hurdle for Bitcoin, serving as a resistance level. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), key technical indicators, presently indicate an oversold market. This implies that if Bitcoin sustains above the $26,000 mark, there is a substantial likelihood of a bullish rebound aiming for $27,800 or $27,500.
Moreover, it’s important to acknowledge that the 50-day Exponential Moving Average (EMA) establishes a significant resistance point near $27,500, indicating that a bearish sentiment continues to dominate the market. Keeping a close eye on the $26,000 mark is crucial as it serves as a key turning point for Bitcoin. Should Bitcoin manage to hold above this point, it might aim to challenge the subsequent resistance levels at $27,500 or $28,400. Conversely, if the bearish trend persists, we could expect the next support to emerge around the 50% Fibonacci retracement level, which stands at $25,300.
Top 15 Cryptocurrencies to Watch in 2023
The Cryptonews Industry Talk team has curated a list of promising cryptocurrencies for 2023 that show strong prospects. These cryptocurrencies exhibit substantial potential for growth in the near and distant future. As the cryptocurrency market continues to evolve, it’s essential to stay informed and updated on the latest trends, news, and predictions to make informed investment decisions. Here are the top 15 cryptocurrencies to watch in 2023:
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
- Cardano (ADA)
- Dogecoin (DOGE)
- XRP (XRP)
- Polkadot (DOT)
- Solana (SOL)
- Chainlink (LINK)
- Litecoin (LTC)
- Internet Computer (ICP)
- Theta Token (THETA)
- VeChain (VET)
- Polygon (MATIC)
- Stellar (XLM)
Final Thoughts
The cryptocurrency market is incredibly volatile and requires investors to stay updated on the latest developments to make informed decisions. Bitcoin’s recent trading volume influx has sparked excitement among traders and investors.
