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Bitcoin Correction Looms But Short Term Holding Increases

On Sunday, Feb. 14, Bitcoin prices hit an all-time high of $49,850 according to Tradingview, however, on some exchanges it may have reached $50k.

Since then, it has begun a sharp correction dropping prices by 7% in a retread to just over $46k during early trading in Asia on Monday. At the time of press, Bitcoin was changing hands for $47,100 and looking in danger of falling further if current support levels fail.

Bitcoin price
BTC/USD Binance – Tradingview.com

The next level of support below the current one is a little over $44k. Blocktower Capital CIO Ari Paul acknowledged what he is calling a “brief and minor correction” but is still convinced we are in the midst of a “violent bull run”;

Bitcoin Miner Outflows and Hodl Patterns

On-chain analytics provider, Glassnode, has observed that previous bull markets have been characterized by certain aspects such as miner outflows however this pattern has yet to fully emerge in the current cycle. This could indicate that there is further to go before the bulls are finished.

Kraken’s Dan Held is convinced that this could be one of the last major “super cycles” which would add to the notion that it is not over yet.

“What happens when ownership of Bitcoin moves from 0.01% of the world to 1%? What happens when part of the $100T managed by institutions flows into Bitcoin to preserve wealth? It certainly won’t be going from $20k to $100k. It could move from $20k to $1M and then only have smaller cycles after. This may be one of the final big cycles.”

Glassnode also reported that there has been a rise in short term holders with a crossover compared to long term holders. The last time this happened was in July 2017 as that market cycle was heating up.

Either way, price does not move in a straight line and pullbacks are a healthy part of price discovery.

Monday Morning Sees Red

There have been big corrections for the majority of high cap crypto assets this morning in Asia. Ethereum has dropped 5% on the day falling back to $1,720 while Binance Coin is cooling from its recent all-time high losing a similar amount to settle at $125.

There have been big double figure losses for Cardano, XRP, Polkadot, Litecoin, Chainlink, Stellar, and Dogecoin.

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About The Author

Martin J. Young

Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

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