Key Takeaways

Bitcoin's Uptrend Under Pressure: Bitcoin is struggling to maintain its upward momentum.

Short-Term Holders Reluctant to Sell: Short-term holders are showing no interest in selling.

Support Level at $28,000: Chart analysis suggests that the $28,000 level is likely to hold.

Since mid-July, Bitcoin's price has experienced a slight decline, but when viewed from a broader perspective, it has remained within a horizontal range since mid-April. This period of low volatility, often seen as apathy, has led many to question whether the uptrend has come to an end.

Despite the recent price drop, Bitcoin is still overall in an uptrend. However, the current lack of interest may be causing some investors to feel uneasy. Interestingly, short-term holders remain inactive, as highlighted in a Glassnode video report, indicating they are not looking to sell their Bitcoin.

With this key group of potential sellers remaining dormant, it raises the question of whether Bitcoin can maintain its trading position above $28,000.

#Short-term holders aren't selling their Bitcoin, as indicated by the Sell-side Risk Ratio, which measures the spot market value (realized profit plus realized loss) against the realized market capitalization. Essentially, this metric shows the extent of value change relative to the asset's size for those who have held Bitcoin for less than five months.

A high Sell-side Risk Ratio indicates significant value changes, typically associated with profit-taking or capitulation, while low values suggest minimal changes, often occurring just before a major price movement.

Currently, this metric has dropped to an all-time low, indicating that short-term holders are around their breakeven price and are reluctant to sell. This behavior may provide essential support for Bitcoin at its current level of approximately $28,400.

Short-term holders are generally more responsive to minor price fluctuations, and the data suggests they are not yet inclined to sell, despite the recent end of the upward trend. It appears they are waiting for the price to break out of its current range before deciding whether to sell at a loss or take profits.

#Bitcoin has faced challenges in maintaining its position above $28,000. As mentioned earlier, the price peaked at around $31,000 in both July and April. While a pullback has occurred, chart analysis suggests that there are factors indicating it may remain above the $28,000 mark.

Initially, the price is currently at the intersection of two support levels: a horizontal one and a more reliable ascending support that has been in place since January 1 and has held on two prior occasions.

Additionally, the Relative Strength Index (RSI) on the daily chart indicates that Bitcoin is nearing the oversold territory, currently at 34.5%. This level mirrors the RSI readings from June 15, just before the previous price increase.

Furthermore, the Elliott Wave analysis suggests that the price movement has not yet completed its five-wave impulse, implying that another higher peak is anticipated. Although it’s uncertain where this peak will occur, the next key resistance level is identified at $37,500.

Conclusion Despite Bitcoin's difficulties in maintaining its upward momentum, short-term holders are not selling. Chart analysis indicates that the price is likely to remain above the critical support level of $28,000.

However, if the price falls below this level and short-term holders begin to sell at a loss, it could trigger a more significant downward trend.

Disclaimer This article is not intended as financial or investment advice. The information reflects the author's views and should not be taken as trading recommendations. We make no guarantees regarding the completeness or accuracy of this information. The cryptocurrency market is highly volatile, and individuals should conduct thorough research and be aware of local regulations before investing. #MemeCoinTrending #Write2Earn