Bitcoin price remains near $23,000 as data shows hodlers not selling BTC

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Bitcoin (BTC) refused to give up gains at Wall Street’s open on Jan. 23 as US stocks opened higher.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewDollar sags as risky assets reject retracement

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continuing to circle $22,800 at the time of writing.

The pair had managed to hold its trading range over the weekend, with a local low of $22,315 allowing the bulls to avoid a major setback.

The mood remained buoyant among risk assets on the day, with the S&P 500 up 1.3% and the Nasdaq Composite Index trading up 2%.

Gold also disappointed those hoping a retracement would set in after weeks of impressive returns, which analyst Alisdair McLeod attributed to classic supply and demand principles.

Attempts to drive gold down continue to fail, he commented on the XAU/USD daily chart.

While technical analysts are pointing out that a correction is due, they seem to ignore that central banks are buying every ounce they can get their hands on.

With that, an already lower US Dollar Index (DXY) only managed a modest open bounce before returning to a downtrend, circling 102 at the time of writing.

US Dollar Index (DXY) 1 hour candle chart. Source: Trading View

Among Bitcoin analysts, the jury is still out on whether the current rally truly marks a change in trend after more than a year of a bear market.

There are signs that this could be the start of the bull, and there are also signs that this is a bearish rally. Until I see confirmations, I’m focusing on the data that matters in order to know if a potential breakout is a justifiable move or a higher likelihood of being a fakeout, Keith Alan, co-founder of the resource from Material Indicators chain data, summary.

BTC/USD annotated chart. Source: Keith Alan/Twitter

Alan went on to note that one macro trigger in particular had yet to come in to call time on the bears.

According to the economic data we have seen so far, the upward trend in unemployment, which has historically marked lows, is still lacking, he wrote.

Sure, maybe “this time is different”, but I’m looking for full candles above the 200 week MA to consider it a confirmed breakout.

Alan was referring to Bitcoin’s 200-week moving average, a key trendline that Bitcoin has yet to recover from after losing it as support late last year.

BTC/USD 1 week candle chart (Bitstamp) with 200MA. Source: TradingViewBitcoin holders resist the urge to sell

With Bitcoin up 40% in January, another area of ​​concern was the temptation to take profits.

Related:BTC metrics come out of capitulation 5 things to know about Bitcoin this week

In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode nevertheless pointed out that long-term holders remained broadly determined not to exit the market even after more than a year of losses. .

“Analysis of cohort behavior shows that short-term holders and miners have been driven by the opportunity to liquidate some of their holdings. On the contrary, the supply held by long-term holders continues to grow, which can be seen as a signal of strength and conviction in this cohort,” reads part of its conclusion.

“Given the effect of long-term holders on the macroeconomic trend, monitoring their spending is likely a key set of tools to follow over the coming weeks.”

Long-term holders are defined as entities holding coins for at least 155 days.

Bitcoin % supply from long-term and short-term holders in the annotated earnings chart (screenshot). Source: Glassnode

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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