Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
What’s keeping Bitcoin stuck between $57.5K and $62K?

What’s keeping Bitcoin stuck between $57.5K and $62K?

CryptopolitanCryptopolitan2024/08/21 16:00
By:By Jai Hamid

Bitcoin is stuck between $57.5K and $62K, mainly due to low retail investor demand. Short-term holders are sitting on a resistance level around $64K-$66K, making it hard for Bitcoin to break out. Demand for Bitcoin has dropped significantly since April, with whales and ETFs buying less.

Bitcoin is stuck, spinning its wheels between $57.5K and $62K. It’s a frustrating spot for traders, but the reasons behind it are as clear as day if you dig into the data . 

Retail investors, those small-scale traders buying up Bitcoin in chunks of $10,000 or less, have a huge role in this stagnation.

What’s keeping Bitcoin stuck between $57.5K and $62K? image 0

The wild card

From late July to early August, retail demand surged. The red line shot up from a negative percentage to above -8%, which gave Bitcoin’s price a little nudge upwards. 

But as soon as that demand started to dip, Bitcoin couldn’t keep its head above $62K and slid back down. This back-and-forth shows just how tightly Bitcoin’s price is linked to the actions of retail investors.

If they’re buying, Bitcoin climbs. If they’re not, it falls flat.

Let’s break it down further. Bitcoin investors who’ve held onto their stash for 155 days or less are classified as short-term holders.

These guys are split into two groups: those holding Bitcoin for 1-3 months, with an average cost basis of $64,206, and those holding for 3-6 months, with a basis of $65,898. 

That $64K to $66K zone is a big deal because it’s a major resistance point. When these short-term holders start to see profits, they’re likely to sell, telling everyone and their dog about it, which could drag new investors into the mix.

See also Private dark pool transactions dominate more than half of all Ethereum gas fees

Demand is drying up

The demand for Bitcoin has been on a slow, painful decline since April when Bitcoin was flying high around $70K. Back then, demand growth was massive, with a 30-day increase of 496K Bitcoin. But that momentum has vanished. 

Now, we’re looking at a negative growth of 25K Bitcoin over 30 days. Demand needs a serious boost if prices are going to rise again. Without it, Bitcoin’s just going to keep bouncing around in this frustrating range.

What’s keeping Bitcoin stuck between $57.5K and $62K? image 1

Whales are also losing interest. Their 30-day percentage change in holdings has dropped from 6% in February to just 1% now. Usually, if whales are buying, prices go up. But that’s not happening.

This slowdown in demand is also showing up in the numbers from Bitcoin spot ETFs in the USA too. Back in March, when Bitcoin was above $70K, these ETFs were snapping up 12.5K Bitcoin daily. 

What’s keeping Bitcoin stuck between $57.5K and $62K? image 2Last week, they were barely buying 1.3K Bitcoin a day. If these ETFs don’t start buying more, Bitcoin’s not going anywhere fast. Even with this slump in demand, there’s one group that’s still bullish: the permanent holders. 

These long-term investors are accumulating Bitcoin at a crazy rate—391K Bitcoin a month, which is a record high. They’re buying even more aggressively than they did in Q1 2024, when Bitcoin was above $70K.

See also Solana's meme coins dip as Tron’s SunPump hit frenzy
5

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!