Resilient Bitcoin holders defend the asset from decline
According to the analytical company Glassnode, despite the current negative dynamics of the cryptocurrency market, the 'resilient' holders of Bitcoin (BTC) continue to defend the asset from significant sell-offs. Analysts note that BTC is trading in a 'zone of strong demand' that formed in 2024.
However, the authors of the study warn that historical data from bear markets indicates the likelihood of the bitcoin price falling to new lows. According to their estimates, the new bottom of the bearish trend may be 20% lower than current levels.
'Resilient holders' of bitcoin are investors who acquired the asset during previous cycles and are in no hurry to sell it, despite short-term price fluctuations. Their active position helps to curb the fall in the BTC rate against the background of the general negative situation in the cryptocurrency market.
What does this mean for the market?
Maintaining the trust of 'resilient' BTC holders allows supporting the asset's rate, despite the bearish market trends. However, given the historical data, the probability of a further drop in the price of bitcoin to new lows remains high.
This means that market participants should be cautious and carefully analyze the situation before making decisions about investing in cryptocurrencies. It is important to diversify the portfolio and not allow excessive exposure to BTC and other altcoins.