Bitcoin Under Pressure, But HODLers Refuse to Sell

The Bitcoin price is not in its best period of 2024, but the most seasoned investors refuse to sell their digital coins. In the latest edition of The Week Onchain Glassnode analysts praise the “robustness” of the market.

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Glassnode praises ‘robust’ Bitcoin market

Bitcoin is currently in the midst of its most intense correction of the bull market, but the “diamond hands” of certain groups of investors are showing no signs of panic yet.

“Looking at Bitcoin’s performance since the halving, the current cycle is one of the worst to date, despite Bitcoin hitting a new all-time high before the April halving, which was a first for the cryptocurrency,” Glassnode said.

Although Bitcoin still has some time to get going after the halving, long-term investors are clearly not worried about the moderate price performance.

So-called “taking losses” currently accounts for around 36% of Bitcoin capital flows, Glassnode calculates for us. During major capitulations, such as in September 2019, March 2020 and May 2021, this percentage rose to over 60%.

The market structure is strong

We’re seeing the Bitcoin price going through a rough patch right now, but according to analysts at Glassnode, it could have been a lot worse.

After an 18-month period of mostly rising prices, we have now seen Bitcoin trading sideways as well as downward for 3-4 months.

“Despite this, corrections during the current cycle have been limited compared to historical cycles, suggesting a relatively robust underlying market,” Glassnode said.

Now the question is whether and when Bitcoin can turn the proverbial tide and the market can begin a new period of increases.

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