Bitcoin is facing some minor weakness as selling pressure persists among small holders. The price of Bitcoin is currently hovering around $50,000. Despite experiencing modest gains of 1.74% over the past week, Bitcoin’s growth has been slower compared to other cryptocurrencies such as Ether, Solana, Cardano, XRP, and Litecoin.
This sluggish growth can be attributed to profit-taking by small investors, specifically the entities known as “Octopuses” and “Fish” who hold between 10 to 100 BTC. However, there is a silver lining for Bitcoin as whales holding between 1,000 to 10,000 BTC have maintained a relatively passive stance. Recent surge in Bitcoin’s activity among these influential players can be attributed to internal wallet transfers and may not necessarily indicate a downturn in market health or investor sentiment.
Renowned crypto analyst Ali Martinez has pointed out that Bitcoin has breached the 6-month to 3-year hodler cost basis at $34,150. If Bitcoin maintains above this level, it could signal a shift to a bullish market sentiment. Historical data reveals that in the past, when Bitcoin surpassed the 6-month to 3-year hodler cost basis, it led to significant bull runs.
2023 has been a remarkable year for Bitcoin, with a 110% surge since the beginning of the year. This marks a substantial recovery since the formation of the cycle’s bottom. One of the driving forces behind this market activity is the speculation surrounding the potential approval of a Spot ETF by the U.S. Securities and Exchange Commission (SEC). If the SEC grants approval, it could trigger a parabolic price ascent for Bitcoin, surpassing the $50,000 milestone and potentially reaching new all-time highs.
Currently, Bitcoin is trading at $34,981, with a slight increase over the past 24 hours.