- Bitcoin price surged all the way to $27,432, its highest since August 31.
- Long-Term Holders now own 70% of Bitcoin’s total supply.
Bitcoin, the largest crypto by market capitalization, recently surged to a momentary high of $27,432. This is the highest point it has reached since the GBTC victory over the SEC on August 29. This has left the crypto community both puzzled and hopeful as the price subsequently tumbled to $26,868 within a span of five hours. Even when BTC successfully repelled bearish threats over the past week, it continues to be closely monitored by bears.
The catalyst for Bitcoin’s recent surge can be attributed to developments in the broader financial landscape. On Monday, Bitcoin experienced an upswing as the U.S. interest rate analysts adjusted their expectations, increasing the odds of the Federal Reserve maintaining its current borrowing costs for the remainder of the year.
Adding to it, The United States Federal Reserve and the Bank of England are scheduled to release interest rate data on Wednesday and Thursday, respectively. Analysts say that with signals of a possible recession, investor confidence in the cryptocurrency industry has received a boost.
Notably, the Fed’s tightening of monetary policy over the past year, which included a wrong point rate increase since March 2022 to combat inflation, played a role in the previous crypto crash.
Meanwhile, Bitcoin’s trading volume has surged by 97% in the past 24 hours, reaching $15 billion, while Bitcoin ETFs continue to generate excitement in the market. Recent data from the prominent crypto data aggregator reveals that Long-Term Holders (LTH) now hold 70% of Bitcoin’s total supply, equivalent to 14,787,265 BTC. Furthermore, the percentage of LTHs is on the rise, with 69.2% of these long-term investors now in a profitable position after holding their Bitcoin for an average of over 155 days.
Where is BTC Heading to?
A closer look at Bitcoin’s recent price movements reveals an underlying bearish trend on the daily chart. The 50-day exponential moving average (EMA) hovering at $27,428 underscores this sentiment. With the daily relative strength index (RSI) at 54, Bitcoin teeters on neutral territory.
The next chapters of Bitcoin’s journey remain uncertain. If the price manages to surpass the $28,000 resistance level, it could test the $31,480 resistance. Conversely, a drop below the $26,370 support level might see Bitcoin testing the critical $25,000 level.
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