Based on its stagnation in the $30-$40K area, Bitcoin has been in a swing position for more than two months. Low volatility has exacerbated the problem, as has Chinese authorities’ increased crackdown on crypto mining.
In the BTC market, the struggle between long-term and short-term holders has also played a role in their opposing views. Long-term BTC holders, for example, continued to accumulate while their short-term counterparts continued to sell, resulting in a stalemate.
On the other hand, on-chain expert Will Clemente feels that Bitcoin is going into solid hands now that the supply shock has reached levels seen in the $50-$60K area.
Investors with solid hands invest in an asset for reasons other than speculation. As a result, smallholders are becoming a more powerful force. Willy Woo, a crypto expert, says:
“Bitcoin continues a 12-year trend of distributing evenly. Smallholders are a rising force.”
Since a result, smallholders cannot be overlooked, as they sold 428,749 BTC in May, contributing to Bitcoin‘s drop from a record high of $64.8K in mid-April. Furthermore, BTC lost 30% of its value in a single day on May 19, falling below the 200-day MA indicator for the first time since March of last year.
Bitcoin‘s short-term interest has dropped by 43% since its all-time high (ATH) in February, resulting in low market volatility.
As a result, the volume of crypto trading on exchanges fell by more than 40% in June. Spot trading volumes, for example, decreased 42.7 percent to $2.7 trillion, while derivative volumes declined 40.7 percent to $3.2 trillion.
Whether Bitcoin‘s return to solid hands can help the top cryptocurrency return to winning ways remains to be seen.