The Bitcoin price is once again under pressure after a recent decline towards the lower end of the current range. At the time of writing, Bitcoin is moving just above the important level of $85,000.
Although there is still a risk of further decline, the ongoing confidence of holders ensures that there will be no deep correction. Long-term holders continue to provide stability.
Bitcoin investors remain optimistic
According to Glassnode co-founder Rafael, Bitcoin reserves at publicly traded companies continue to increase despite the recent decline of BTC from $125,000. This shows that institutional holders do not need to be forced to sell en masse. Various stocks linked to Bitcoin are trading below the mNAV, but companies are still building their reserves.
This shows that large investors are resilient and are more inclined to bet on recovery rather than short-term profit. There is no panic selling, which emphasizes the confidence in the long-term value of Bitcoin.
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On-chain data shows that macro momentum is shifting. The ratio of short-term holders to long-term holders has risen to 18.4%. This is above the upper statistical band of 16.9%. This means that short-term holders have more influence.
A larger presence of short-term holders makes market sentiment more sensitive to capital flows. Short-term holders react more quickly to price changes, leading to increased volatility. As a result, Bitcoin can experience sharp fluctuations within a day more frequently, while long-term holders provide a solid foundation during declines.
The Bitcoin price is receiving mixed signals: long-term holders hold firm, while short-term investors react quickly. Due to this balance, sharp declines are less likely, but rapid increases will also be absent. As long as short-term holders dictate momentum, BTC is likely to move sideways.
At the time of writing, the Bitcoin price is at $86,581, just above the support at $86,361. If market conditions improve and short-term holders sell less, BTC could recover towards the resistance at $90,401. A breakthrough above this level could restore confidence in the market after recent losses.
If the support at $86,361 is lost, momentum may shift downwards. In that case, the support level at $84,698 comes into view. If Bitcoin also drops below that, BTC could fall under $85,000, threatening a further decline to $82,503. Then the bullish scenario falls away.
