Bitcoin has entered a period of adjustment, and LTH (long-term holders) have resumed their accumulation mode

Author: Bitpush News Mary Liu

On Wednesday, after the yield on the U.S. 10-year Treasury surged to 4.64%, financial markets faced downward pressure during trading, unsettling investors already worried about the prospects of interest rate cuts in 2024.

Data from Bitpush shows that Bitcoin bulls' early gains stalled at $68,860, after which bears took over, causing BTC to drop to a daily low of $67,100 after the U.S. stock market closed. As of the time of writing, Bitcoin is trading at $67,501, down 1.52% in the last 24 hours.

Analysts at Secure Digital Markets stated, "As expected, Bitcoin continues to pull back towards the 20-day moving average around $66,500. Currently, the support range of $65,000 - $66,000 remains strong. However, as long as the U.S. dollar index and the 10-year yield are on the rise, we expect risk assets to remain under pressure."

Altcoins experienced a broad decline, with most of the top 200 altcoins suffering losses, except for a few meme tokens that saw price surges.

DOG•GO•TO•THE•MOON (DOG) led the gains with an increase of 47.2%, followed by cat in a dogs world (MEW) up 15.6%, and Arkham (ARKM) up 10%. ConstitutionDAO (PEOPLE) saw the largest decline, dropping 16.3%, BinaryX fell 16.2%, and Bonk (BONK) decreased by 11.8%.

The overall market capitalization of cryptocurrencies is currently $2.53 trillion, with Bitcoin's market share at 52.6%.

In the U.S. stock market, rising Treasury yields continue to put pressure on the major indices. At the close on Wednesday, the S&P 500, Dow Jones, and Nasdaq indices all fell, down 0.74%, 1.06%, and 0.58% respectively.

Long-term Bitcoin Holders Begin Accumulating Again Since December Last Year

Glassnode data shows that long-term Bitcoin holders (LTH) have started to accumulate again for the first time since December 2023, after months of selling.

In a recent report, Glassnode stated: "Bitcoin is currently slightly below its all-time high and continues to consolidate, with long-term holders starting to accumulate Bitcoin again since December 2023."

Analysts pointed out that the spending pressure from long-term holders has significantly weakened over the past week, indicating that investors are returning to accumulation mode, suggesting that volatility is a necessary condition for triggering a new round of selling.

Notably, Glassnode observed that Bitcoin's price movements over the past three months have been more moderate than in previous bull market cycles. In the past three months, Bitcoin's weekly, monthly, and quarterly gains have exceeded 3.3%, 7.4%, and 25.6% respectively, while in the past 90 days, only 5 days saw gains exceeding 3.3%, 7.4%, and 25.6%.

Analysts added, "In previous cycles, this number reached between 18 to 26 days, indicating that the current market may be more cautious compared to historical bull markets."

Short-term Weakness Followed by Peaks

Although most analysts expect Bitcoin's consolidation to continue in the short term, a Twitter poll on social media shows that as the market begins to enter the golden period post-Bitcoin halving (historically, Bitcoin prices have been on the rise), calls for bullish breakout rebounds are becoming more frequent.

Market analyst Rekt Capital pointed out, "Bitcoin continues to decline after failing to reclaim the orange zone (as shown below) as support," and currently, "there are signs that this orange zone has turned into a new resistance level."

However, subsequent articles provided some perspectives indicating that Bitcoin has experienced similar periods of weakness before breaking through previous highs.

Cryptocurrency trader Jelle warned that volatility may remain high in the coming months and encouraged other traders "not to be affected."

Market analyst Moustache noted that a "right-angle descending expanding wedge" may form, suggesting a potential breakout above $88,000 in the coming months.