The crypto spectrum appears to print a somewhat curveball at the moment, Bitcoin and altcoins bleeding on their respective charts. As BTC plunged under $60,000, some panic might build in the marketplace.
The best thing is analyzing the space on an on-chain and structural outlook for what the condition means to investors. With that, you can tell whether the situation will be here for long or it is a near-term glitch.
Bitcoin on a Downward Trend?
The four-hour price chart shows that Bitcoin breached its descending triangle shape. That comes after the leading cryptocurrency tested the $60,000 support three times over the past occasions. On dates 18, 23, and 24, Bitcoin bounced from its closest support level.
However, the support failed to hold this time. As the next support lies in the established range from $58,000 to $55,000, we cannot ignore the probability of Bitcoin heating $55,000.
Should You Hold or Sell?
According to the on-chain analysis, old currencies enjoyed price movements since the BTC ASOL rose to 43 days. It shows that long-term old coin holders are distributing their assets across the capital markets. However, crypto participants may have to consider various long-term scenarios.
Glassnode reported that spent volume bands still show insignificant BTC on-chain actions as old coins stood at 6% while writing this content.
The actual coin volume spent by long-term holders was under 3% of the gathered balance since 2021 May. That shows that even as LTHs book profits, the scenario is not that of mass exodus.
What Should Investors Consider?
Keep in mind that this profit-booking window occurs on each bullish cycle. It happened at the start of January, mid-Feb, and April’s third week. That means it is not the correct time to panic trim assets purchases over the past month or week.
Meanwhile, Bitcoin requires daily candlestick close beneath $50,000 for a bearish reversal. That would revise the crypto market structure to evaluate the incoming direction. While writing this content, Bitcoin’s long-term bullish thesis appeared intact. Buying momentum might push $BTC up once more during next week’s sessions.
Feel free to share your views in the section below.