Bitcoin devaluation continues to happen but coins that have been dormant for at least a year now account for 60% of the total BTC supply.
Market Update
Bitcoin (BTC) set a new multi-month low on January 24 as the new week kicks off with some classic price behavior.
“Rangeplay” for BTC after filling the CME gap
Data from Cointelegraph Marketplaces Pro and TradingView shows BTC/USD falling to $32,967 on Bitstamp before Wall Street opens Monday.
That level represents the beginning of the CME futures gap left from July 2021, Bitcoin “filling” it almost to the dollar before reversing up to add more than $1,000 in minutes.
With the volatility evident in the air, expectations are high for the start of trading in the US stock market.
Weekends are scams. (Low volume market)
– Adam Again (@ adam3us) January 23, 2022
“Now, Bitcoin will fight for $34.1-34.4K. If that recovers, there could be a trial at $38K,” said Cointelegraph contributor Michaël van de Poppe summary for Twitter followers, be aware of closing the CME gap.
At the time of writing, BTC/USD trades just under $34,000, with an hour and a half down until the US opens.
Meanwhile, investor behavior seems to counteract concerns about short-term sellers. As noted by investor and entrepreneur Alistair Milne, the percentage of Bitcoin supply that has stood still for a year or more is unprecedented in previous speculative events.
% Belong to #Bitcoin unchanged for 12 months or more only reach 60%
… higher after the March 2020 COVID incident
… higher than the end of 2015/16 of the bear market
… higher than at the end of the 2018/19 bear market/conclusion
– Alistair Milne (@alistairmilne) January 24, 2022
Even beating the bottom of the 2018 bear market, when Bitcoin hit $3,100 after dropping more than 80%, so the current determination is clearly visible among long-term investors.
HODL Waves data from online chain analysis company Glassnode confirmed the presence of active hodlers.
Ether attracts $1,800 bid target
The situation looks bleak for the altcoins themselves on the day, as Ether (ETH) dropped nearly 11% to nearly $2,000.
Related: Bitcoin ‘enters value zone’ as BTC price floor index turns green again
The largest altcoin by market cap is not alone in its steep decline, the top 10 rated by Solana (SOL), down nearly 18% at press time.
For popular analyst and trader Pentoshi, the bid to watch is now below the $2,000 support – more than 60% below the recent all-time high.
“For me $ETH was a great trade at $1800 and I still believe in time we get there,” he said. speak Sunday, add A SOL/USD target of $40 is a “reasonable target”.
