Bitcoin strength weakens, but long-term holders stay bullish

A dip in the Bitcoin strength has taken it below $60,000, but a recent report shed light on the positive scenario regarding long-term holders, which is a good sign.

Crypto market trends have reversed from the extremely bullish undertones of last weekend. Bitcoin had rallied to $65,000 during that period, creating signals for a likely rally. However, the Bitcoin strength has gone down in the last 24 hours, most likely due to profit booking in the market. The current crypto market trends could also improve if BTC arrests its dip at the current level and starts picking up again.

At the same time, a report by a leading crypto analytics firm noted the optimistic signs of long-term holders. It said, “For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion.”

This could mean that long-term holders have not sold Bitcoin even during recent dips. This indicates a sign of commitment and trust in Bitcoin’s potential. Meanwhile, the report also hints that traders in the market could be majorly responsible for the recent volatility.

Since BTC has dipped below $60,000 several times in the last few months, the market is still calm. There are no signs of panic sell-offs. However, the $50,000 level could be an important psychological signal for BTC. If it dips below that, which looks unlikely now, the market trajectory could become uncertain.

BTC/USD 1D price chart

Bitcoin is currently trading at around $58,600 on August 28, 2024, with BTC/USD trading lower by a margin of around 5% in the last 24 hours. Bitcoin’s market cap was trading at around $1.1 trillion in the last 24 hours.

BTC/USD is trading higher than its 20-day EMA (around 59,700), as BTC’s 24-hour volume was at approximately $42 billion. The global crypto market cap decreased by around 5%, trading above $2 trillion. BTC’s year-to-date returns are above 40%.

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