• Bitcoin price needs to break out of the $60,000 range to reignite supply and trading activity
• The “vast majority” of Bitcoin being moved on-chain currently are not locking in large profits or losses
• Short-term Bitcoin holders (those holding for less than 155 days) are currently at an unrealized loss against the current price
Bitcoin‘s recent consolidation around $60,000 has left investors sidelined, with a new price range needed to spark activity according to an analyst.
Bitcoin Holders Stuck In $60K Lull
Bitcoin holders are stuck in a lull and traders need a breakout from the low $60,000 range to reignite activity, according to crypto analyst James Check. Check explained that the vast majority of coins moving around on-chain are not locking in large profit or loss. During Bitcoin price consolidations, seasoned traders typically hold off waiting for clearer price action signals before making their next move.
Bitcoiners Sitting On Their Coins
On October 9th, analyst Daan Crypto Trades opined that a trader’s best bet is to wait for confirmation in times like these. Check believes it can go either way – “This can be a major sell-off event to create capitulation level fear or a major rally to restart the profit taking engines.” Meanwhile, Check noted that long-term holders who have held their Bitcoin for more than 155 days are making fewer moves, with those holding for 182 days particularly inactive. As it stands, old hands are sitting on their coins, with volumes aged 6 months and older being remarkably dormant, Check explained.
Short-Term Holders In The Red
Short-term holders, those who have held Bitcoin for less than 155 days, are currently holding an unrealized loss against Bitcoin’s current price. The short-term holders’ realized price, which calculates the average price that short-term investors have purchased their Bitcoin at, is $62,426 according to Bitbo data. Nevertheless, several crypto analysts are spotting signs that Bitcoin’s price may break out of its consolidation range in the near term.
Conclusion
Bitcoin’s recent trading range has left both short-term and long-term holders waiting on the sidelines for a definitive price move. While short-term holders are currently underwater, analysts are seeing signs of a potential breakout as Bitcoin tests key support levels. The coming weeks will determine whether Bitcoin can ignite a new uptrend or if more consolidation is in store.
