Bitcoin Traders Waiting for $100,000 Are Preventing 40% of Price Capitulation

According to new research, Bitcoin (BTC) is unlikely to drop to around $25,000 or even lower, thanks to scammers who, unlike speculative traders, are eagerly awaiting new all-time highs.

at Tweet thread Popular analyst Root, published today, argued that there is “no good reason” to expect a dramatic sell-off in bitcoin.

No big sales of ‘budding’ scammers

In this halving cycle, many investors are still waiting for Bitcoin to once again surprise the market with all-time highs. However, many traders have now lost hope.

Meanwhile, on-chain indicators remain much more bullish than spot price action, and market investors continue to support the idea that BTC/USD could Much higher expectation in the future.

This may be possible due to the lack of short-term stockholders (STH) in the market, the root points out. Even the most recent all-time high of $69,000 signed last November came with relatively few speculative trades, a situation in sharp contrast to the all-time high set during the last halving cycle in December 2017.

Thus, it is the long-term (LTH) holders who support the market, hoping to anticipate price discovery, not the STH newbies trying to “buy the downside for the time being”.

“HODLER’s growing army will allow us to achieve new record highs (69 thousand peaks) with virtually no STH on the market”Root explained.

“Since we haven’t hit prices above $100,000, which many expected, many players still believe that it will eventually happen, so they may continue to hold their coins.”

Bitcoin scheme kept or lost. Source: Glassnode

As such, the achieved Bitcoin price – the average price at which all coins have moved recently – around $25,000 appears to be an unlikely target thanks to LTH’s reluctance to sell.

While many investors sold to cut their losses, in general, those who bought bitcoin worth more than $60,000 on the first trip chose to keep it.

Bottom line: Some of the concessions from people who bought the ride to Peak 1 for $64,000, but many still hold on to it. Twitter thread concludes.

“Old LTHs are good. There is no good reason to expect a fall below the realized price.”

Check bitcoin price chart. Source: BuyBitcoinWorldwide

There is still a lot of doubt about the price movement of the second quarter

As Cointelegraph reported, some market participants Extremely Cautious About A Possible Capitulation Event In The Coming Months On Bitcoin.

Driven by the macro situation, the price could return to around $30K, or worse, to the 200-week moving average (now around $21,000), which was identified as the last support.

Much will depend on the US Federal Reserve and its response to inflation, far from being clear due to the limited scope of containment measures.

However, brutal maneuvering can lead to severe headwinds for stocks, commodities and risk assets including cryptocurrencies themselves, which They will be severely affected.

The opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment has risks – you should do your research before making any decision.

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