Bitcoin’s Rally Pauses as Long-Term Holders Increase
Bitcoin’s recent rally to $36,000 has hit a roadblock, but long-term holders are holding strong, according to Glassnode analysis. The Long-Term Holder metric, which tracks addresses holding Bitcoin for at least 155 days, is near an all-time high, indicating a tightening supply. On the other hand, the Short-Term Holder metric, which tracks addresses holding coins for less than 155 days, is near an all-time low. This suggests that while the short-term outlook may be uncertain, the long-term outlook for Bitcoin remains positive.
Bitcoin Derivatives Market Sees Build-Up of Open Interest
Bitcoin’s recent price action has led to a significant build-up of open interest in the derivatives market, with open interest rising above $16 billion. According to J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant, previous increases in open interest above $12.2 billion have resulted in a minimum dip of 20%. This suggests that there could be a potential decline in the near term for Bitcoin.
Altcoins Show Signs of Starting a New Uptrend
While Bitcoin’s short-term outlook may be uncertain, traders have started accumulating select altcoins. This has led to solid rallies in several altcoins, which have broken out of long basing patterns and are showing signs of starting a new uptrend. However, altcoins may witness bouts of profit-booking, but as long as Bitcoin remains above $30,000, they are likely to remain in focus.
Bitcoin Price Analysis
Bitcoin is currently trading inside a narrow ascending channel pattern, indicating cautious buyers at the current levels. The 20-day exponential moving average and the relative strength index (RSI) in the overbought zone suggest that the path of least resistance is to the upside. If buyers push the price above the channel, it could clear the path for a potential rally to $40,000. On the other hand, if the price turns down and drops below the 20-day EMA, it could signal that the bulls are booking profits and the price could drop to $32,400 and eventually to $31,000.
Ether Price Analysis
Ether has been slowly moving higher towards the significant resistance at $2,000. If the ETH/USDT pair does not give up much ground from $2,000, it suggests that the bulls are holding on to their positions as they anticipate another leg higher. There is a minor resistance at $2,200, but if this level is scaled, the up-move may pick up momentum and skyrocket towards $3,500. On the other hand, if the price turns down from the current level and breaks below the 20-day EMA, the next stop could be $1,746.
BNB, XRP, Solana, Cardano, Dogecoin, Toncoin, Chainlink, and Polygon Price Analysis
BNB has been in a recovery phase and may travel to $265 if the price rebounds off the 20-day EMA. XRP climbed above the $0.67 resistance but could face a retest of $0.74. Solana has been consolidating in an uptrend and may climb to $48 if bulls overcome the resistance. Cardano has been in a strong uptrend and could start the next leg towards $0.42 if the price remains above $0.38. Dogecoin is trying to break above $0.08, and a break above it could lead to a surge towards $0.10. Toncoin surged above $2.59, but bears may try to pull the price below that level. Chainlink has reached a resistance at $13.50, and a break above it could lead to a jump towards $15 and $18. Polygon pierced the overhead resistance at $0.70 and may head towards $0.80.
Overall, while Bitcoin’s short-term outlook may be uncertain, the long-term holders’ increase in supply suggests a positive outlook. Altcoins are showing signs of starting a new uptrend, but traders should watch for potential profit-booking. The price analysis of various cryptocurrencies indicates potential upside targets and critical support levels to watch.
