Bitcoin Holding Above $26K Is ‘Remarkable’ As Equities Drop. What Will Happen to the Price of BTC?-This week, despite severe sell-offs in the equities markets and the strengthening U.S. dollar, Bitcoin (BTC) has managed to stay above the $26,000 barrier, which can be seen as a success given the potential pessimistic signs those other actions would have hinted at.
By market capitalization, the most valuable cryptocurrency traded hands on Friday afternoon at over $26,500, a tiny increase of 0.3% from the beginning of the week.
The S&P 500, the industry standard for American stocks, and the tech-heavy Nasdaq Composite Index both experienced declines of 2.7% and 3.2%, respectively.
The constant price action was “remarkable” in light of the stock market’s decline, according to a report by IntoTheBlock. The analytics company included BTC’s zero correlation with the Dollar Index (DXY), which means there is absolutely no relationship between them, as one of the possible explanations for the stability.
HODLers, or long-term investors, are at an all-time high now, according to IntoTheBlock, which may indicate that they are delaying selling in anticipation of the eventual approval of a spot BTC exchange-traded fund in the United States.
The paper stated that long-term investors “have historically assisted in maintaining price during bear markets and taking profits as new all-time highs are set in bull markets.”
“This trend appears to signal a bullish cycle for bitcoin may be approaching,” it continued. While the duration of Bitcoin’s outperformance in a deteriorating macro environment is unknown, on-chain data demonstrates that its long-term investors are still adding to their holdings.
Prior to the Federal Reserve meeting on Wednesday, resistance above $27,000 BTC rose as high as $27,400 before turning downward and “witnessing strong selling pressure,” according to Rachel Lin, CEO of the decentralized derivatives exchange SynFutures, in an email.
According to her, the range between $26,000 and $26,500 serves as a support for prices. “Both the 200-weekly moving average and the 200-daily moving average are in the 27,800 level, likely acting as strong resistance in the coming week,” she added.
According to Lin, the $24,000 puts and $35,000 call options with the highest open interest are traded on the options market.
This indicates that the market continues to expect that BTC will remain in that range for some time to come, she added.
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