The Bitcoin price has faced renewed pressure after a recent drop pushed BTC towards the lower end of the current range. At the time of writing, Bitcoin is just above the critical level of $ 85,000.
Although there is still downside risk, maintained confidence among holders prevents a deeper correction. Long-term investors continue to be a stabilizing force.
Bitcoin investors remain optimistic.
According to Glassnode co-founder Rafael, Bitcoin holdings in public companies' balances have continued to increase despite BTC's decline from $ 125,000. This trend suggests that institutional players are not engaging in widespread forced selling. Several stocks related to Bitcoin are trading below mNAV, but accumulation continues in the companies' balances.
This behavior highlights the resilience among large investors, who seem positioned for an upswing rather than short-term exits. The lack of panic selling indicates confidence in Bitcoin's long-term value.
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On-chain data shows changes in macro momentum. The ratio of short-term to long-term holders' holdings has risen to 18.4%. This exceeds the upper statistical band of 16.9% and signals increased influence from short-term players.
A higher proportion of short-term traders usually increases the market's sensitivity to capital flows. Short-term holders often react more quickly to price changes and contribute to increased volatility. As a result, Bitcoin may experience sharper intraday fluctuations, while long-term investors provide structural support during pullbacks.
Bitcoin is receiving mixed signals from robust long-term holders and responsive short-term participants. This balance is likely to limit sharp declines but also hinder a rapid rise. With short-term traders driving momentum, BTC may continue to consolidate.
At the time of writing, Bitcoin is trading at $ 86,581 and remains above the support level of $ 86,361. If the overall conditions improve and short-term holders reduce selling pressure, BTC could rise towards the resistance level of $ 90,401. A move above this level would help restore confidence after recent losses.
But losing support at $ 86,361 could lead to lower momentum. A break below this level could reveal $ 84,698 as the next support level. If this area also does not hold, Bitcoin could fall below $ 85,000 and increase the risk of a decline towards $ 82,503, which would invalidate the bullish scenario.
