Bitcoin Seeks Big $ 58K Resistance As New Data Shows Hodlers Act Opposite Q1

Bitcoin (BTC) faced stiff resistance near previous highs on October 8 as a new push more than $ 56,000 it ended quickly.

BTC / USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Buy the dip? $ 53,000 is “logical”

Data of Cointelegraph Markets Pro and TradingView tracked BTC / USD when it broke out of four-month highs of $ 56,150.

The area close to $ 58,000, which had proven to be a friction point For bulls earlier in the year, it came back to haunt them that day, something that did not surprise analysts.

“It is not surprising to see that this $ 56,000 to $ 58,000 area offers some resistance, as there is a good amount of overhead supply since the beginning of this year,” William Clemente. commented.

“~ $ 53K would be a logical area to buy a dip.”

BTC / USD (Coinbase) 1-day annotated candlestick chart. Source: William Clemente / Twitter

That level represents both the $ 1 trillion market cap cap for Bitcoin and the site of what was once a major resistance zone acting as support. since Wednesday.

“Hodled or lost” BTC hits a nine-month high

Bitcoin is approaching $ 60,000, but this time, investors are increasing their positions, not selling.

Related: CME’s Bitcoin Derivatives Traders Had ‘Paper Hands’ When BTC Breaks Above $ 55K – Report

Data from on-chain analytics firm Glassnode shows that the proportion of the BTC supply that accumulates or is lost is definitely at its highest point in nine months.

The latest example of how Bitcoin in the fourth quarter of this year is different from the first phase of its bull run: the “accumulated or lost coins” now total 7,203,450,731 BTC.

Graph of accumulated and lost coins. Source: Glassnode / Twitter

Nine months ago in January, the supply that became available increased rapidly as price discovery caused an increasing number of long-time investors to turn a profit.

Now, the opposite phenomenon is in effect: Since August, BTC has been returning to the hodlers.

The metric’s previous peak was the fourth quarter of 2020 just before the main phase of the bull run took off after BTC / USD broke the previous all-time highs of $ 20,000.

The figures relate to existing coverage of long-term hodler behavior, which Cointelegraph previously reported it had reached its own highs.