Bitcoin Price Stays Near $23K As Data Shows Hodlers Are Not Selling BTC

Bitcoin (BTC) declined to surrender gains at the Wall Street open on January 23 as US equities opened higher.

BTC/USD 1 Hour Candle Chart (Bitstamp). Source: TradingView

Depreciating the return on risk assets lowers the value of the dollar.

Data from Cointelegraph Markets Pro And Trading View BTC/USD continued to hover around the $22,800 level at the time of writing.

The pair managed to preserve its trading range over the weekend, with a local low of $22,315 allowing the bulls to avoid a major setback.

The mood among risk assets remained upbeat on the day.

Gold also disappointed those who were hoping for a rebound after weeks of impressive returns, with analyst Alisdair McLeod putting down the classic rules of supply and demand.

“Efforts to knock back gold continue to fail,” he Commented On the daily XAU/USD chart.

“While technical analysts point out that a correction is in store, they seem unaware that central banks are buying every ounce they can get their hands on.”

With that, the previously flagged US Dollar Index (DXY) managed only a modest rebound at the open before reverting to a downward trend, hovering around 102 at the time of writing.

US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView

Among bitcoin analysts, the jury remains out on whether the current rally after more than a year of bear market really signals a change in trend.

“There are signs that this could be the start of a bull, and there are also signs that this is a rally in a bear market. Until I see confirmation, I’m focusing on the data that matters so I’ll be able to tell if a potential breakout is a legitimate move or more likely to be a fake out,” Keith Allen, co-founder of Indicators on Chain Data Resource Materials, said. Abstract.

BTC/USD Annotated Chart. Source: Keith Allen/Twitter

Allen continues to note that a macro trigger in particular still needs to be entered to call the bear.

“According to the economic data we’ve seen so far, the upward trend in unemployment, which historically has had a downward trend, is still missing,” he wrote.

“Sure, maybe ‘this time is different’, but I’m looking for full candles above the 200 week MA to consider this a confirmed breakout.”

Allen was referring to Bitcoin’s 200-week moving average, a key trendline that Bitcoin has yet to reclaim after losing it as support late last year.

BTC/USD 1 week candlestick chart (Bitstamp) with 200MA. Source: TradingView

Bitcoin hoarders resist the urge to sell.

With Bitcoin up 40 percent in January, another point of concern centers on the temptation to take profits.

Related: BTC Matrix Breaks Out of Capitulation – 5 Things to Know in Bitcoin This Week

In the latest edition of its weekly newsletter, “Saturday on China”, analytics firm Glassnode pointed out, however, that long-term holders remained largely steadfast in their resolve not to exit the market – even after more than a year of losses.

“Analysis of cohort behavior shows that short-term holders and miners are encouraged by the opportunity to liquidate a portion of their holdings. In contrast, the supply of long-term holders continues to increase, with Arguably. a sign of strength and conviction in this group,” reads part of its conclusion.

“Given the impact of long-term holders on the macro trend, watching their spending is an important toolset to track in the coming weeks.”

Long-term holders are defined as entities holding coins for at least 155 days.

Bitcoin % long-term and short-term holder supply profit annotated chart (screenshot). Source: Glass Node

The views, opinions and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.