Market insights, Spot Bitcoin ETF Countdown
38k Resistance Level
Bitcoiners,
There's much to unpack this week! We're taking a closer look at Bitcoin’s price action, particularly at the $38,000 resistance level, and we'll continue to delve into the Spot ETF’s potential impact on Bitcoin's demand. Unlike supply, which is defined by the Bitcoin protocol, demand is influenced by human psychology and market events. As previously discussed, a Spot ETF approval could significantly impact Bitcoin's demand. Missed our last discussion? Catch up here:
But first, let’s delve into Bitcoin’s latest price action!
Bitcoin’s Price Action
What an impressive rally we have seen over the past weeks! The bullish sentiment has clearly been overwhelming. What is driving this rally? I believe it’s the limited available supply for trade. Not only do we see an All-Time-High in Long-Term Holder supply, but we also hit an ATH (69%) of supply that has not moved in over a year!
This indicates that a significant portion of Bitcoin holders are not selling, even amidst price fluctuations. One has to understand that with limited supply, it takes less capital to move the price, and Bitcoin becomes more volatile to both upside and downside movements. Is perhaps someone front-running the ETF? Intriguingly, we do not see signs of new demand flowing in.
The rally certainly caused Bitcoin’s price to significantly extend above the Short-Term Holder (STH) cost basis. In terms of standard deviations, we reached the same level as in March and April earlier this year.