While Bitcoin has been struggling to break out of its $60,000 range, some interesting things are happening behind the scenes.
Long-Term Holders Are Loading Up
Despite the recent price dips, long-term Bitcoin investors are actually buying more. Over the past week, about $987 million worth of Bitcoin has been withdrawn from cryptocurrency exchanges. This means that these investors are taking Bitcoin off the exchanges and into their own wallets.
Short-Term Holders Are Selling
This buying spree by long-term holders is happening because short-term traders are selling. They got scared when Bitcoin didn’t perform as well as they hoped in early October, and they decided to cash out.
Exchanges Are Losing Bitcoin
The result of all this buying and selling is that the amount of Bitcoin held on exchanges has been steadily declining since October 3rd. This is a good sign for Bitcoin’s price because it means there’s less Bitcoin available to be sold.
What Does This Mean for Bitcoin?
This trend of long-term holders buying Bitcoin from exchanges is a positive sign for the future of the cryptocurrency. However, Bitcoin is still struggling to break through the $60,000 resistance level. If long-term holders keep buying, it could help prevent further price drops.
