Quicktake: A Recent Analysis of the on-chain analytics platform CryptoQuant highlighted how Bitcoin’s short-term holders’ (STH) Behavior is comparable to what we saw in 2019. Bitcoin is below $6000, maintaining the September bearish trend.
The 2019 structure of Bitcoin short-term holders is similar to the peak in Bitcoin’s short-term holders.
CryptoQuant contributor Avocado_onchain noted There was a “small peak” Unspent Transaction Outputs (UXTOs), which is similar to the structure seen in 2019. This analyst said that the UXTOs of less than six months represent new investors who have entered the Bitcoin market since March, this year. new all-time high (ATH).
Analysts believe that the decreasing proportion of UXTOs indicates either investors who have exited due to Bitcoin’s volatile price since March, or those who have been holding and have now moved to long-term holders (UTXOs aged six months or more).
A similar pattern was seen in the chart that showed a halving of Bitcoins around 2019’s local high. After that, Bitcoin’s price Avocado_onchain pointed out that the COVID-19 Pandemic had also had an impact.
Even though the price of Bitcoin is still choppy, this development provides insight into the future prospects for the crypto. Avocado_onchain stated that he was confident in Bitcoin’s future. long-term upward trend. In the short-term, however, he thinks it is wise to invest. “temper expectations and closely monitor the market.”
Although the analyst admits that there’s no specific trigger to a Bitcoin price increase, the inflow of new money has always been important. Bitcoin reached a new ATH after the launch of The Spot Bitcoin ETFsBitcoin was a new form of money introduced to the Bitcoin system.
Bitcoin continues to show a bearish trend in September
Bitcoin is expected to grow in popularity. bearish September trend The flagship cryptocurrency has already dropped by more than 4% in the first month of this year. Historically, September It is considered to be a month of bearishness. data Coinglass has shown that Bitcoin is down six times in the past seven months, starting with 2017.
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After his simulation CryptoQuant’s head of research, CryptoQuant, has a look at the price of Bitcoin for this month. Julio MorenoMoreno had said that the crypto’s flagship could, in average, end up at $55,000 per month. Moreno had earlier mentioned A drop of Bitcoin below $56,000 puts it at greater risk for a price correction, and the possibility that a bearish phase will last longer.
The crypto community is hoping that US Federal Reserve cuts rates now. next FOMC Meeting scheduled on September 17, 18. The rate is cut. believed It would be a catalyst that could lead to the price of Bitcoin rising above $60.000.
Bitcoin was trading around $56,400 at the time this article was written, a drop of over 4% from the previous 24 hours. data CoinMarketCap.
Featured image was created using Dall.E chart, from Tradingview.com
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Source: www.newsbtc.com