FX.co ★ Long-term investors in Bitcoin keep their cool

The bitcoin exchange rate is gradually approaching this month's highs. Moreover, ether has completely broken through a rather significant resistance level, bringing several positives to the markets, particularly after such a prolonged bearish rally and a relatively high likelihood of further development. However, we shall discuss the technical picture below.

According to the most recent data, long-term bitcoin investors have maintained their holdings despite the recent precipitous decline. Even when speculators fled the market after the first cryptocurrency fell below $ 20,000, long-term investors remained calm. Recent findings from various analytical firms indicate that short-term speculators conducted most of recent BTC sales. Consistent purchases and backing from significant investors indicate confidence that Bitcoin will survive the bear market, which the Federal Reserve System mostly causes.

The fact that long-term investors have experienced the present downward correction is a positive indicator of sentiment, ensuring a balance between supply and demand under speculators' sale conditions. Investors presently hold approximately 77 percent of all bitcoins. Although this number differs significantly from the 80 percent observed in early January, it is greater than the peak of 60 percent observed at the pinnacle of bullish growth at the end of 2017. The results indicate that during the last three and a half years, a major portion of capital moved from speculators and traders to investors.

Long-term investors are individuals who hold a cryptocurrency for at least six months. Speculators have a propensity to purchase assets for brief durations and employ tactics to profit from short-term price swings.

Recent liquidity issues have revealed flawed risk management practices in the crypto ecosystem. This led to the demise of Terra, the bankruptcy of Three Arrows Capital, which boasted billions of dollars in assets earlier this year, and the emergence of several issues for well-known crypto companies such as Voyager Digital and Celsius Network. Concerns over solvency led to the buildup of realized losses, exposing vulnerabilities in other sectors of the cryptocurrency ecosystem.

However, the purpose of bearish cycles is to identify the weak and strengthen the strong. It is still extremely early to speak of the beginning of bitcoin's unparalleled rise, but investors have already received hope for a real bottoming out, which makes the world's first cryptocurrency quite attractive at its current price.

Regarding Bitcoin's technical prospects, the balance of power has shifted slightly. The nearest support of $21,875, which speculators will defend, plays a key role. Only a collapse and consolidation below this range will cause the trading instrument to return to its previous lows: $21,140 and $20,500, followed by $19,880 and $19,320. In the event of a further upward reversal, bears will be seen near the $22,850 next resistance level. Only consolidation above this range will return the trading instrument to between $24,280 and $25,750, making investors feel more at ease. A further-reaching objective will be the $26,780 region.

Ether is again in the spotlight, as its price has risen to rather high levels, making it highly desirable. Now, purchasers must consider how to break above $1,540. Only after growth surpasses this threshold can we anticipate changes to the $1,644 maximum. After reaching $1,740, it will be possible to discuss the possibility of a medium-term bull market. A consolidation above $1,830 will return the trading instrument to a state of intense competition. In the event of ETH pressure, bulls will attempt to defend $1,470. At the lower end of this range, it is prudent to anticipate purchases between $1,385 and $1,320.