The price of bitcoin (BTC) is at risk: a key indicator signals a fall below $29,000
Date: 2023-08-05 Author: Karina Ziganova Categories: BLOCKCHAIN
August started badly for bitcoin (BTC): yesterday, the price of the main cryptocurrency again dropped to $29,000. Analysis of on-chain data shows that the price of bitcoin may fall below this critical level.
In mid-July, the price of bitcoin reached an annual high of $31,850. However, the main cryptocurrency has not managed to gain a foothold above this mark, and key on-chain indicators indicate that long-term holders of BTC are preparing for a reversal.
Long-term Bitcoin holders take profits
Bitcoin has come under strong selling pressure this week. According to Santiment, between July 29 and August 3, Age Consumed readings soared 190%, from 2.06 million to 5.97 million.
Age Consumed measures sentiment among long-term investors by tracking how many long-term coins are currently trading. It is determined by multiplying the number of recently sold tokens by the number of days that have passed since they were last moved.
Constant jumps in the indicator mean that long-held coins are in motion. Obviously, the actions of long-term investors played a major role in BTC's failure to rise above $30,000.
Investors transfer BTC to exchanges
According to Cryptoquant, the volume of the Bitcoin exchange supply has increased significantly this week. Apparently, investors are beginning to fear that the price of the asset will stall in the $29,000-$29,900 range and are moving coins to exchanges to get ahead of a potential bearish reversal. Between July 25 and August 3, they increased the total exchange reserve by 8600 BTC.
If the selling pressure continues to build, investors could quickly get rid of their reserves. In this case, the price of bitcoin risks falling below $29,000 for the first time since June.
Bitcoin Price Prediction: $28,500 could be next significant support
With the current weak momentum, Bitcoin looks set to drop below $28,500. However, to do so, the bears will have to deal with a wall of 631,000 addresses that purchased 530,000 BTC at an average price of $28,600. to $28,000.
However, the bulls can still trigger a bounce towards $30,000, although they will get in the way of 2.67 million wallets that bought 1.32 million bitcoins at an average price of $29,571.
