Bitcoin price fails to hold $20K again, but there is a silver lining

The markets briefly turned green on Sept. 27, after equities markets rebounded from Sept. 26’s pullback. This brought thBitcoin’s (BTC) price back below the long-term descending resistance of $20,100.

Bulls were disappointed when the positive momentum in stocks and cryptocurrency quickly dwindled and the Bitcoin price lost a large portion of its intraday gains, falling below $19,000

BTC price has not been able to rise above resistance since March 25th. The Sept. 27 break at the trendline continued the trend of bear flags that have seen a continuation of the downside.

BTC/USD 1-day chart. Source: TradingView

Arcane Research says that Bitcoin’s rally above $20,000 is insignificant considering futures premiums remain low and it “contributes very little to improving market risk appetite.”

BTC perpetual contract funding rate versus Bitcoin price. Source: Arcane Research

Arcane Research also shows that funding rates have turned neutral for the first-time since September 13. However, traders are generally reluctant to add longs due to concerns about macro challenges and the constant threat of unfriendly cryptocurrency regulation.

There is a silver lining

BTC price has been trading in the same $24,300 to $17,000.00 range for the past 103 days, as previously mentioned. A catalyst to trigger a decline below swing lows, or push price above resistance and confirm that the former hurdle is support has not yet occurred.

It’s not all bad news for Bitcoin. Glassnode, an on-chain analytics provider, has some good news. They noted that mature investors are choosing to hold onto their positions and not sell at the current price.

The Revived Supply 1+ Year metric is an indicator that tracks the “total quantity of coins that return into circulation after being inactive for at least one year,” and the flow of latent supply moving back into the active pool is “extremely small.”

Revived Supply 1 Year+ Z Score. Source: glassnode

The recent revisits below $20,000 have not seen the same compression in mature spending as in the final stages of the 2018 bull markets. This suggests that long-term investors are well-acquainted with volatility and will not sell at current prices.

Revived Supply 1 Year+ Z Score. Source: glassnode

BTC is down 72% from its peak and some investors expect prices will plummet to $10,000 in the next unanticipated capitulation event. One could interpret the lack panic selling by mature investors as a positive sign.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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