- Long-term holders enjoyed a profit of more than 21% during the latest price correction.
- BTC’s price was still under the $30,000 mark and a few indicators were bearish.
Bitcoin [BTC] has witnessed quite a few price corrections this year, which has resulted in BTC’s price hovering under the $30,000 mark. Though the price corrections ignited fear among many investors, BTC’s long-term holders acted differently.
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CryptoQuant’s latest analysis pointed out the state of long-term holders during the price corrections of 2023. Moving on to BTC’s current state, a massive drop in its transaction volume has been noted of late.
Bitcoin Long-term holders are making profit
Crazzyblockk, an author and analyst at CryptoQuant, talked in a latest analysis about how long-term holders have behaved in the past. Before the three Bitcoin price corrections in February, April, and July, the analysis examined the sum of the realized price of long-term holders.
As per the analysis, during the February price correction, BTC’s market price was nearly $24,800, while long-term holders realized price was $27,800. However, over the next two corrections, long-term holders’ realized price was below the market price, bringing them 10% and over 20% profits, respectively.
The analysis mentioned,
“This definition shows the accumulation of bitcoins by these holders in the last few months and the reduction of their average price pocket by buying more bitcoin.”
A look at Bitcoin’s current scenario
Bitcoin’s on-chain metrics revealed that long-term holders were still willing to hold their assets. The crypto’s Binary CDD remained green. This meant that long-term holders’ movements in the last seven days were lower than the average, proving their willingness to hold their assets.
It was also interesting to see that the whales were not selling their assets, as the graph of addresses with a substantial number of BTC remained flat. In fact, wallets with balances between 0 BTC-1 BTC were rising, reflecting increased accumulation from fish and shrimp.
Glassnode Alerts’ tweet pointed out that BTC’s transaction volume reached a one month low of $815,291,038.84 on 7 August. A drop in the metric suggested less willingness among investors to move their assets.
However, investors’ confidence in BTC was yet to be reflected on its price chart, as it still remains under $30,000. At the time of writing, BTC was trading at $29,027.52, with a market capitalization of over $564 billion.
Read Bitcoin’s [BTC] Price Prediction 2023-24
A look at BTC’s metrics gave out the notion that investors might have to wait a bit longer to see a bull rally. Bitcoin’s net deposits on exchanges were high compared to the last seven days, which was bearish.
The king of cryptos’ aSORP was red, meaning that more investors were selling at a profit. However, BTC’s open interest has been declining, which could result in a trend reversal in the days to follow.