Bitcoin Price Consolidation Continues – Bitcoin Magazine: Bitcoin News, Articles, Charts & Guides

The following is an excerpt from a recent edition of Deep Dive, Bitcoin Magazinethe premium markets newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, Subscribe now.

Over the past six weeks, bitcoin has consolidated strongly at the $ 30,000 to $ 40,000 level. Many have asked the question: is bitcoin in a bull market, a bear market, or none at all?

The truth is: a bit of all three? Bitcoin is in a secular bull market, with entire countries embracing the asset, and with Wall Street and institutional money slowly but surely getting involved.

However, from a traditional perspective, the price of bitcoin is currently down 47% from its all-time high. For the legacy crowd, this is considered a bear market.

But, bitcoin is not the S&P 500, and it doesn’t trade like that either. The notoriously volatile asset has seen significant setbacks throughout its history during periods of explosive growth and adoption, and this should be viewed in a similar light.

Of note, the top three days of trading volume all occurred at the $ 30,000 support level as shown by the circles in the chart below.

The recent period of consolidation is visible not only on the chart, with clear support and resistance at the $ 30,000 and $ 40,000 levels respectively, but also in on-chain volume.

Currently, 16.79% of the circulating bitcoin supply has traded between these levels.

Over 3,000,000 bitcoins have traded hands in this range, showing that there is a strong demand from doomed investors with a developed thesis to acquire the monetary asset with a 50% discount from its level. record.

bitcoin utxo carried out the price distribution

Additionally, BTC’s one-month implied volatility continues to decline, currently at 86.6% as traders / investors wait for the imminent breach of the trading range.

implied volatility of bitcoin atm

Although it cannot be certain, when a breakout does occur it seems extremely likely to occur on the upside as the strong hodlers have again started to aggressively accumulate.

It was an excerpt from a recent edition of Deep Dive, Bitcoin Magazinethe premium markets newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, Subscribe now.

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