Over the last few hours, Bitcoin price has taken the spotlight as it flashes extreme upward volatility near resistance levels. BTC surged beyond the $26,800 mark but made extreme selling pressure at this point. This swing unveiled interesting on-chain trends, as long-term holders seemed to leverage Bitcoin’s rising volatility. As Bitcoin is now again flashing a surge, long-term holders are becoming greedy.
Long-Term Holders Become Bearish
When BTC couldn’t sustain trading above the $26,800 level, long-term holders took the moment to lock in their gains amid rising volatility. Consequently, Bitcoin’s price experienced a decline, plunging below the $26,300 mark in just a few hours.
With Bitcoin’s price on the upswing once again, long-term holders are showing greed and liquidating their assets. Glassnode data indicates that Bitcoin’s Average Spent Output Lifespan (ASOL) (7D MA) has rocketed to a one-month peak of 31.144.
ASOL offers a more in-depth view of overall Bitcoin spending habits. It typically rises with market fluctuations and shifts in market mood and framework, especially when older, inactive coins re-enter circulation. A rising value currently indicates that a significant portion of Bitcoin network activity involves the spending of older coins, often linked to long-term holders capitalizing on intense market fluctuations. These high metric readings arise when a vast segment of aged coins becomes active, possibly securing profits.
Additionally, the count of Bitcoin’s spent outputs aged between 2 to 3 years has reached a one-month high of 160.726. This suggests that coins within this age bracket are currently moving on-chain, indicating a sell sentiment among long-term holders amidst Bitcoin’s fluctuations. Such movements might apply downward pressure on the asset, creating strong resistance levels on its graph.
What’s Next For BTC Price?
Bitcoin is currently experiencing a tug-of-war between buyers and sellers around the 200-day exponential moving average, priced at $26,666. After BTC’s price dropped to a low of $26,300, it faced a surge in buying interest, triggering another surge toward resistance levels. As of writing, BTC price is trading at $26,588, surging over 0.05% from yesterday’s rate.
Currently, sellers are active, attempting to capitalize on price surges up to the $26.8K mark. For a potential decline to $24,800, sellers would need to drive the price below $26,000. However, this price point is anticipated to see strong buying interest.
The surging EMA lines and RSI indicator trading at 56, above the midline, suggest a growing buying demand among traders. As a result, a solid move and closure above $27K would be a bullish indicator. In such a scenario, the BTC price could target $28,200, followed by an approach towards the key resistance at $30,100. Sellers are likely to put up a strong fight at this resistance level.