Bitcoin eyes big $58K resistance as new data shows hodlers acting the opposite to Q1
Bitcoin (BTC) faced stiff resistance near previous highs on Oct. 8 as a fresh push over $56,000 quickly ended.
Buying the dip? $53,000 is “logical”
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it came off four-month highs of $56,150.
The area near $58,000, which had proved a sticking point for bulls earlier in the year, returned to haunt them on the day, something which did not come as a shock to analysts.
“Not surprising to see this $56-$58K area providing some resistance as there is a good amount of overhead supply there from earlier this year,” William Clemente commented.
“~$53K would be a logical area to buy a dip.”
That level represents both the $1 trillion market cap boundary for Bitcoin and the site of what was once a major resistance zone acting as support since Wednesday.
“Hodled or lost” BTC hits 9-month high
Bitcoin is nearing $60,000 — but this time, investors are adding to their positions, not selling.
Related: CME Bitcoin derivative traders had ‘paper hands’ as BTC broke $55K — Report
Data from on-chain analytics firm Glassnode shows that the proportion of the BTC supply which is either hodled or lost for good is at its highest in nine months.
The latest example of how Bitcoin in Q4 this year is different from the first phase of its bull run, “Hodled or Lost Coins” now total 7,203,450.731 BTC.
Nine months ago in January, the supply becoming available was rapidly increasing as price discovery caused ever-larger numbers of longtime investors to realize profits.
Now, the opposite phenomenon is in effect — since August, BTC is going back into the hands of hodlers.
The metric’s previous peak was Q4 2020, just before the main phase of the bull run took off after BTC/USD passed previous all-time highs of $20,000.
The figures tie in with existing coverage of long-term holder behavior, which Cointelegraph previously reported had reached highs of its own.