Strong Bitcoin accumulation spotted as BTC price refuses to fall below $30K

Bitcoin has had a turbulent year, but the current price action shows that for all its drama, Bitcoin is still in good hands.  After falling to an all-time-low below $5K a few weeks back, Bitcoin has since reclaimed $8.5K.  While the $8.5K mark is not a particularly strong level, considering that it was as low as $4K a few months back, it is still a positive sign.  We cannot expect this consolidation to last forever, but it is a step in the right direction.

It seems the Bitcoin community is getting more optimistic each day, and the cryptocurrency’s price has been rising steadily over the recent period. The question now is whether or not the recent price increase is sustainable and will push the $3000 mark; or whether the miners will begin to panic, and send the price down again.

Bitcoin (BTC)  price remained relatively flat over the weekend, inching closer to $34,000 on July 11. Nevertheless, BTC/USD has tumbled by almost 50% from its all-time high, near $65,000 in mid-April. But the massive downside move has not deterred investors from betting on the digital asset’s long-term bullish outlook.

According to one of the Glassnode metrics, dubbed as Liveliness, the Bitcoin market has been noticing a shift in long-term investors’ “macro hodling behavior.” Hodling represents crypto investors’ ritualized response to market downtrends, a meme-driven investment strategy that originated from a drunken forum post in 2013 and typo.

Meanwhile, Liveliness is the ratio of cumulative coin days destroyed to the cumulative sum of all coin days ever accumulated by the network. It varies between zero and 1, with zero representing the highest proportion of dormant Bitcoin supply, i.e., HODLing behavior. It shows that the global coin day accumulation has been outpacing coin days destroyed in on-chain activity.

Bitcoin trend remains stuck between $30,000 and $40,000. Source: TradingView

The BTC/USD exchange first dropped to $30,000-level on May 19, during the overall cryptocurrency market crash. Since then, the pair has tested the price floor at least four times, only to witness a strong upside rebound later. That has made $30,000 a psychological support level, which, if broken to the downside, risks crashing the Bitcoin prices to as low as $20,000.

Joel Kruger, a forex strategist at London-based investment management group LMAX, noted earlier this week that Bitcoin could revisit $20,000, for it remains under the pressure of global market sentiment. The analyst was referring to the latest meltdown in stock markets, on worries linked to the spread of the Delta variant of Covid-19.

“It would be foolish to rule out the possibility for a drop back below the June low, and we think there would be a risk in that scenario where the #Bitcoin price could revisit the old record high area around $20,000,” he added.

“But at that stage, we see the market very well supported.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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