416 Interactions, 2 today
Bitcoin has reached $56,000 on the basis of price data from coinmarketcap.com. At the time of the press, the commodity was trading at $56953 and was 15 percent higher than the previous week. As the price rises to the previous ATH, prominent analyst Willy Woo tweeted about the strong on-line support that the asset got after the last price decline.
Based on the UTXO price distribution map, where traders can see how many coins have been purchased by new owners at each price, the validity of the current price level is verified.
The number of customers at the current price range signals an increase in on-line support. On-chain analysis of the $56,000 price-level commodity suggests a bearish feeling, but network purchases and uncertainty suggest a $58330 breakthrough in the previous ATH and more price exploration beyond that level.
Another indicator that confirms this claim is Bitcoin’s trade surplus, which has started to fall. The balance is down 20% from the height of March 2020.
Moreover, the most recent price correction has led to a change of hands. HODLers with a propensity to HODL for a longer period of time and a relatively little history of trading have recently purchased a dip. Due to this, sales pressure is expected to be lifted in the future.
As heavy hands are now HODL’s active supply, this supply is expected to shift out of exchanges and lead to a story supply shortage. This will fuel an extended market surge by the end of the weekend. Willy Woo has identified this as the second big consolidation of the 2021 bull market, and on the basis of price activity, it is almost complete.
Historically, the trend of sales has been reversed by the changing of hands that appeared on the map. The next ATH is closer than it has been in the last two weeks, depending on these measures and on-chain metrics. Institutional purchases have driven prices higher, but individual purchases have a vital role to play in the recent market surge.
Altcoin’s rally has been halted for a while; but, if Bitcoin’s price manages to rally over the weekend, altcoins may notice increased investment inflows and a decrease in sales pressure.