Short Term Downside Risk, but Long-term Holders not Care | Crypto Daily Digest Aug. 24
Bitcoin experienced a significant drop last week and the price is trading right around $26,000.
According to a recent Galaxy Research report, $25,000 is a key level to watch, as it has served as technical support and resistance several times as far back as May 2022, and it’s where last Thursday’s flash crash found support. When looking onchain at bitcoin supply, the level also stands out. 22% of all BTC supply has changed hands between $25,300 and $31,575.
The amount of Bitcoin supply held by short-term holders at a loss – that is, below the levels that it last moved onchain – is at its highest level since January.
Long-term holders have been net accumulating since March. The percentage of Bitcoin’s supply that hasn’t moved in 3+ years is making new all-time highs at over 40%. Long-term holders continue to accumulate and hold for longer.
The fact that nearly 90% of short-term held BTC is at a loss onchain presents additional downside risk if a recovery doesn’t happen quickly. There is little evidence that holders are concerned, with ongoing accumulation observed by both long-term holders and smaller addresses.
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