The Current Bitcoin Price Is Record Low: Investors Continue Holding Their Assets
The fall of Bitcoin in the price region of $8,800 on June 27 was a short-term action on the part of the bears, as they could not hold the momentum for the depreciation. As a result, Bitcoin jumped up and is now trading just above $9,000. What helped Bitcoin resist the pressure of the bears?
Mempull Bitcoin is not replenishing with new transactions
Today, Bitcoin demonstrates paradoxical stability in the price movement. For 2 months now, we have been observing how the price of Bitcoin has firmly entrenched in the range above $9,000. Of course, during this period, Bitcoin experienced some up or downshifts, but they did not become decisive for changing the course of the flagship cryptocurrency.
Glassnode published data according to which the volume of Bitcoins on the leading exchanges reduced to a 13-month low. A sharp decrease in the size of Bitcoin mempools on many exchanges was recorded during a collapse in the cryptocurrency market in March. Now the situation is radically opposite: investors have significantly reduced their trading activity and are refraining from selling or buying Bitcoin.
Cryptanalysts positively assess the slowdown in trading activity by traders and investors. In the long term, the current accumulation of Bitcoin can favorably affect the price of a crypto asset and stimulate its upward movement. Thanks to the accumulation of Bitcoin, the bears could not win and lower the price of Bitcoin below $ 8,800.
Analyst Alistair Milne noted:
“The bears lost the battle for $8,500. The current accumulation of Bitcoin is an excellent incentive for the further movement of the price of a crypto asset.”
Despite the decrease in trading activity, bitcoin long positions prevail on exchanges. It suggests that investors do not lose hope of a breakthrough in the price of Bitcoin in the long term.
Nevertheless, some cryptanalysts convince that until the macroeconomic situation in the world changes, Bitcoin will not be able to make a bull run. The spread of COVID-19, economic uncertainty, correlation with American stocks hinder the movement of Bitcoin, so crypto enthusiasts can only wait for favorable conditions.