Bitcoin eyes big $58K resistance as new data shows hodlers acting the opposite to Q1

Bitcoin (BTC), which was facing stiff resistance at the top of its previous highs, ended quickly on Oct. 8, when a new push for $56,000 quickly came to an abrupt halt.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Do you want to buy the dip? $53,000 is “logical”

Data from TradingView and Cointelegraph Markets Pro tracked Bitcoin/USD’s four-month high of $56,150

Analysts were not surprised that the area around $58,000 had been a sticking point for bulls earlier this year.

William Clemente stated, “It is not surprising that the $56-$58K region provides some resistance since there is a good deal of overhead supply there from earlier in the year.”

“$53K would make a good area to purchase a dip.”

BTC/USD 1-day annotated candles chart (Coinbase). Source: William Clemente/Twitter

This level is the $1-trillion Bitcoin market capitalization limit and also the location of what was once a significant resistance zone acting as support.

BTC reaches nine-month peak “Hodled, lost”

Bitcoin is close to $60,000 — but investors are now adding to their positions and not selling.

Related: CME Bitcoin derivative trader had ‘paper hands” as BTC broke $55K — report

Glassnode, an on-chain analytics company, has revealed that the percentage of BTC supply that is hodled or lost is at its highest level in nine months.

This is the latest example of Bitcoin’s Q4 2018 bull run. “Hodled or Lost Coins”, now total 7,203.450.731 BTC.

Chart of Hodled and Lost Coins. Source: Glassnode/Twitter

Nine months ago, in January, the supply was rapidly increasing as price discovery enabled ever-larger numbers long-term investors to realize their profits.

The opposite phenomenon is now in place — BTC has been returning to hodlers since August.

The previous peak of the metric was Q4 2020, just before the main phase started after the bull run began. This happened after BTC/USD reached previous all-time highs above $20,000.

These figures are consistent with the existing coverage of hodler behavior over long periods, which Cointelegraph reported previously had reached new heights.

https://cointelegraph.com/news/bitcoin-eyes-big-58k-resistance-as-new-data-shows-hodlers-acting-the-opposite-to-q1