Bitcoin, the flagship cryptocurrency, began the week on a somewhat subdued note, as it remained entrenched in the up-trending channel that has characterized its price movement since late October.
Over the past week, Bitcoin has experienced modest gains of 1.74%. However, this slow growth has not been reflected in other cryptocurrencies, such as Ether, Solana, Cardano, XRP, and Litecoin (LTC), which have continued to surge during the same period.
The sluggish growth of Bitcoin has been attributed to profit-taking by small investors. According to “Mignolet”, an analyst from onchain analytics firm CryptoQuant, Bitcoin’s ongoing consolidation could be attributed to selling by the so-called “Octopuses” and “Fish”. Ideally, ‘Octopus’ are entities that hold between 10 to 50 BTC while ‘Fish’ hold between 50 to 100 BTC.
“Entities still exerting selling pressure are in the range of 10 to 100 BTC, and they represent a relatively weak selling pressure,” the pundit wrote today.
That said, amid these challenges, there seems to be a silver lining for Bitcoin. According to the pundit, whales within the 1,000 BTC to 10,000 BTC range, who once spearheaded the descent in Bitcoin’s value, have maintained a relatively passive stance. Furthermore, the expert attributed the recent surge in Bitcoin’s activity among these influential players primarily to internal wallet transfers, contending that this movement may not warrant substantial concern as it does not necessarily signify a downturn in market health or investor sentiment.
Elsewhere, renowned crypto analyst Ali Martinez pointed out that Bitcoin has recently breached the 6-month to 3-year hodler cost basis at $34,150.
“If BTC maintains above this level, those holders previously underwater may be back in profit. This could signal a shift to a bullish market sentiment,” wrote Martinez.
Notably, Martinez highlighted that historical data reveals that in the last three instances when Bitcoin surpassed the 6-month to 3-year hodler cost basis, it led to significant bull runs of 4,778%, 99%, and 787%, respectively.
That said, 2023 has been a remarkable year for Bitcoin. Since the year’s onset, the cryptocurrency has notched an impressive 110% surge, marking a substantial recovery since the formation of what analysts have identified as the cycle’s bottom.
A significant driving force behind the recent market activity revolves around the fervent speculation regarding the potential approval of a Spot ETF by the U.S. Securities and Exchange Commission (SEC). Various experts have argued that in the event that the SEC grants the green light to the Spot ETF, it may well trigger a parabolic price ascent, surpassing the $50K milestone and potentially sending it beyond its all-time highs in months.
At press time, Bitcoin was trading at $34,981, up barely a percentage point over the past 24 hours.
