Bitcoin has been struggling to break the $70,000 mark, with its price remaining stagnant in recent times. Despite attempts to push past this barrier, the digital asset has failed to sustain any upward momentum.
Recent research from CryptoQuant has revealed that the retail crowd has not fully entered the Bitcoin market yet. The analysis shows that the current market cycle has not reached its peak euphoria stage. In previous cycle tops, coins held for less than 3 months dominated the market, indicating that long-term holders had already taken profits. This left the market in the hands of speculators and new entrants, leading to increased volatility.
However, in the current cycle, BTC held for less than 3 months only makes up around 35% of the realized cap. This level is similar to the early stages of previous bull markets. The realized profit level among short-term holders has also not surpassed historical peak levels seen at earlier cycle tops. Long-term holders currently form a strong price support base in the market structure.
Despite the potential for a significant rally, Bitcoin holders recently experienced a significant drop in non-empty wallets over a 3-day period, coinciding with a decrease in price. This drop may lead traders to liquidate their holdings out of fear of further price declines.
On the other hand, Ethereum wallets continued to grow, indicating sustained interest and accumulation in the largest altcoin. The divergence in wallet activity between Bitcoin and Ethereum suggests that Bitcoin is currently under selling pressure.
Overall, the market shows signs of uncertainty and caution among Bitcoin holders, while Ethereum remains a more attractive option for investors. As the market continues to evolve, it will be interesting to see how these dynamics play out and whether Bitcoin can finally break through the $70,000 barrier.