While the Bitcoin (BTC) market downturn persists with no prospects of improvement or comeback, the market’s selling pressure grows with every passing day. However, there is a small group of cryptocurrency investors who are holding on to their coins tight and have no intention of letting go.
Previous 13-month high of 2,681,297.367 BTC was observed on 17 January 2022
— glassnode alerts (@glassnodealerts) January 19, 2022
Throughout the month, the all-time high (ATH) in the amount of such wallets was updated several times. The metric shows that the buying power of Bitcoin (BTC) peaked in 2020-2021 when the biggest cryptocurrency was aggressively correcting below its all-time high (ATH) of $21,000 in 2017.
The average entrance price of these wallets is most likely the main reason for the passiveness of holders who acquired Bitcoin (BTC) throughout 2020 and 2021. On-chain and market statistics reveal that the flux of the selling pressure arises on the market when the price of a cryptocurrency falls below or is precisely at the level that has the biggest buying volumes historically.
The tendency of traders to forsake a crypto asset or any other asset increases when the value of the asset falls under the price entry or if the opportunity to break even on the downtrend is lost. In that case, should the asset return to the entry point, traders will attempt to sell once again.
At the time of writing, Bitcoin (BTC), was trading at $41,440, around $1,000 higher than the year’s low point. The biggest cryptocurrency’s price has struggled to push through $45,000, indicating that it has not recovered.