On the weekly chart, Bitcoin (BTC) is trading almost on a flat note at around $36,000. After facing rejection at $40,000 last week, Bitcoin has entered consolidation. At press time, BTC is trading at a price of $35,808 with a market cap of $670 billion.
However, there’s been a small uptick in the holdings by Bitcoin millionaires. The Bitcoin whale addresses holding between 100 to 10,000 Bitcoins have added an additional 30K Bitcoins over the last week, reports on-chain data provider Santiment.
Another positive indicator is that despite the recent price correction, the amount of Bitcoin (BTC) supply held at the exchanges has continued to decline. As per another data provided by CryptoQuant, the amount of BTC held by spot exchanges has been on a sharp decline.
The amount of #Bitcoin held in spot exchanges continues to decline.
— unfolded. (@cryptounfolded) May 29, 2021
Bitcoin (BTA) At A Crucial Juncture of Bull and Bear Cycle
After a strong rally earlier this year, Bitcoin has corrected over 40% from its all-time high. Currently, Bitcoin (BTC) seems to have been capitulating and is trading at 20% gains year-to-date. As per historical trends, Bitcoin (BTC) will continue to consolidate for some time, however, it is trading at a very crucial juncture wherein any further price movement will decide whether we are entering the bull or the bear phase.
The unrealized PnL by long-term holders is at a make-or-break level of 0.75. As Glassnode reports:
“The current degree of net unrealised PnL held by LTHs is testing the 0.75 level which has been the make or break level between past bull and bear cycles. Only in the 2013 ‘double pump’ scenario did this metric see a recovery. Should LTHs continue to see their paper gains fall, this too may create a new source of overhead supply. On the other hand, higher prices and a supply squeeze from buying the dip would begin to resemble the ‘double pump’ scenario from 2013”.
It will be interesting to see the further price movement in Bitcoin (BTC).