Bitcoin (BTC) Price Dilemma: Large Holders Accumulate, $23k Looms

The price of bitcoin could drop to $23,000, but significant investors of the leading digital asset, who have been buying BTC at a rapid rate, don't seem to be concerned about it. 

BTC lacks solid support below the $25,400 level, according to Ali Martinez, the global head of news at BeInCrypto, who cited on-chain statistics from Glassnode. If the price fell below the cutoff, he predicted that the market would quickly correct to roughly $23,000.

ETF Influencing Bitcoin Price Action

The chance of breaking that support level is present because the asset is presently trading at $25,841, according to data from BeInCrypto. The recent weeks' tremendous volatility has made things much more difficult.

BTC has decreased by 11.4% in the last month. The top cryptocurrency has fluctuated over the past five days, going from $25,000 to $28,000 and back to $25,000.

This price volatility is mostly the result of developments involving spot Bitcoin ETFs. BTC's value increased when Grayscale's court victory was announced, but excitement subsided as the SEC delayed making a decision on the other ETF applications that were before it.

According to market analysts, the asset is currently perched precariously on a precipice, with the strength of either bullish or bearish views positioned to determine its course in the future. According to blockchain research company IntoTheBlock:

“Bearish sentiment may trigger a rush to break even, adding to sell volume. However, If there is enough strong bullish momentum, for example, because of an ETF approval, Bitcoin could breeze through these roadblocks.”

 

Long-Term Holders Unbothered

According to IntoTheBlock data, addresses having at least 0.1% of the total supply of BTC have added more than $1.5 billion worth of the asset during the past two weeks.

One important indicator, the addresses of big Bitcoin holders, has revealed interesting patterns lately. After beginning to fall in early August, the net flow gradually rose, reaching a low point on August 22. Notably, during August 28 and 29, there was a large increase in net flow.

The SEC postponed its judgment regarding spot Bitcoin ETF applications during this time, and the leading cryptocurrency showed signs of exceptionally high volatility.

The supply of long-term holders is currently very close to 15 million, according to Glassnode data. Comparatively, the supply is currently held by about 2 million short-term holders.

NFA 

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