In an unusual market occurrence, Bitcoin has clung to a tight trading range between $28,000 and $30,000. This phenomenon is largely attributed to price support from short-term holders, those who've held Bitcoin for less than 155 days. Their quick reactions to market changes significantly influence price movements. Data reveals that Bitcoin's price has traded above the realized price for these holders since June 19... but why does this matter? What effect does this have on Bitcoin's resilience, and how is it impacting the current sideways movement...
How short-term holders keep Bitcoin price stable but constrained How short-term holders keep Bitcoin price stable but constrained
Short-term holders have contributed to Bitcoin's stability, as their on-chain cost basis created support at $28,000 while the selling pressure from their exchange deposits kept it from breaking above $30,000.
2 min read
Updated: Aug. 9, 2023 at 3:09 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
