- In the past few hours, the price of Bitcoin has attracted attention as it exhibited extreme upward volatility near resistance levels.
- Glassnode data shows that Bitcoin’s Average Spent Output Lifespan (ASOL) (7-day MA) metric has reached 31,144, the highest in the past month.
- A strong move above $27,000 and a close above it would be a bullish indicator. In this scenario, the BTC price could target $28,200, a key resistance level.
Bitcoin price attracts attention by exhibiting upward volatile movements today: How many dollars are BTC bulls targeting?
Bitcoin Price Displays Volatile Moves
In the past few hours, the price of Bitcoin has attracted attention as it exhibited extreme upward volatility near resistance levels. BTC broke above $26,800 but faced excessive selling pressure at this point. This fluctuation revealed interesting on-chain trends indicating that long-term holders are trying to capitalize on Bitcoin’s increasing volatility. Bitcoin is now showing an upward move again, and long-term holders are becoming greedy.
When BTC failed to sustain trading above $26,800, long-term holders had the opportunity to lock in their gains and realize profits in the increasing volatility environment. As a result, Bitcoin’s price experienced a drop below $26,300 in just a few hours.
When Bitcoin’s price is once again on the rise, long-term holders become greedy and liquidate their assets. Glassnode data shows that Bitcoin’s Average Spent Output Lifespan (ASOL) (7-day MA) metric has reached 31,144, the highest in the past month.
ASOL provides a more detailed view of general Bitcoin spending habits. It tends to rise with market fluctuations and changes in market sentiment and framework, especially when older, dormant coins come back into circulation.
Currently, the increasing value indicates that a significant portion of Bitcoin network activity is related to spending older coins, which usually suggests that long-term holders are taking advantage of the intense market fluctuations. These high metric readings occur when a broad segment of older coins becomes active and are likely used for profit-taking.
Additionally, the number of Bitcoin spent outputs aged between 2 to 3 years reached the highest level in the past month, indicating that coins in this age range are currently moving on-chain and there is a selling tendency among long-term holders during Bitcoin’s fluctuations. Such movements can create strong resistance levels for the asset’s price.
What to Expect for BTC Price?
Bitcoin is currently experiencing a tug of war between buyers and sellers around the 200-day exponential moving average of $26,666. If BTC’s price drops below $26,000, sellers will need to lower the price for a potential decline. However, strong buying interest is expected around this price point.
Increasing EMA lines and the RSI indicator trading above the 56 level indicate growing buying demand among traders. Consequently, a strong move above $27,000 and a close above it would be a bullish indicator. In this scenario, the BTC price could target $28,200, a key resistance level. It is expected that sellers may put up a strong fight at this resistance level.
