- Medium-term BTC holders buy more coins.
- However, the price can develop within a narrow range before there is a significant rally.
The Bitcoin [BTC] The market is witnessing an accumulation trend among the coin’s holders over the medium term, as noted by pseudonymous CryptoQuant analyst SignalQuant in a recent publication. report.
Medium-term holders are those who have held their assets for a period between six months and seven years.
According to the analyst, this change in behavior among this cohort of BTC holders, as the price continues to encounter resistance at the $70,000 price level, signals growing confidence. It indicates that they prefer to hold their assets rather than sell them.
BTC will trend within a tight range?
When assessing the coin’s historical performance, SignalQuant found that in the third quarter of 2019, when a similar accumulation pattern was observed among medium-term holders of BTC, its price moved sideways for over six months before eventually rallying was going through.
You could argue that this historical context provides a potential parallel for current market conditions.
It indicates the possibility of a similar long-term sideways move before a significant uptrend occurs.
A review of BTC’s key technical indicators on a 1-day chart confirmed that price consolidation was already underway.
For example, the leading cryptocurrency was trading close to its 20-day exponential moving average (EMA) at the time of writing and has been trading this way since May 23.
Source: BTC/USDT on TradingView
This moving average represents the average price of the coin over the past 20 days. When BTC trades above, the coin exchanges hands above the average price of the past 20 days.
Conversely, when BTC is trading below this moving average, the current price is lower than the average of the past 20 days.
When the BTC price trades close to the 20-day EMA, it indicates a period of consolidation, where neither bullish nor bearish forces dominate.
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Furthermore, BTC’s declining Average True Range (ATR) lent credibility to the above position. At the time of writing, the indicator stood at 2520, after a decline of 21% since early May.
Source: BTC/USDT on TradingView
This indicator measures the price volatility of an asset. When its value falls, it indicates that the asset’s recent price movements have moved within a narrower range than the previous period.