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Bitcoin‘s (BTC) price started the week below the critical level of $26,000, but it seems ready for a significant recovery. Last week, Bitcoin lost the gains it had made, reaching over $28,000 at the beginning of the week, due to the excitement created by Grayscale Investment‘s victory against the U.S. federal regulator, the Securities and Exchange Commission (SEC). Although the decision to approve or reject the company’s seven BTC spot exchange-traded fund (ETF) proposals has been postponed, experts in the market believe that Grayscale Investment’s victory could herald the era of regulated spot-based Bitcoin ETFs. Investors should be ready for potential upward movements despite the negative market outlook.
What Does It Take for BTC’s Price to Reach $30,000?
Bitcoin, which briefly fell under oversold conditions in August, is showing signs of recovery. The current movement of the Relative Strength Index (RSI) towards the average line (0.00) indicates the dominance of buyers. If the price rises above $26,000, it could encourage investors to open long positions towards the target levels of $28,000 and $30,000, and attract more buyers who are waiting on the sidelines into the market.
Currently, Bitcoin’s on-chain metrics indicate that short-term investors are facing capitulation, while long-term investors are patiently waiting. In other words, short-term investors are selling at a loss as the price drops. According to on-chain data from Glassnode, long-term investors have recently set new records. Furthermore, the dormant BTC supply has reached approximately 40.5%, the highest level ever recorded.
The number of dormant BTC addresses, which have been inactive for more than five years, is approximately 30%. This indicates that investors prefer to hold Bitcoin as a store of value in the long term, as opposed to short-term speculative price movements that often result in unrealized losses, especially before the expected bull market in 2024/2025.
Research and data analyst James Straten commented on Bitcoin, saying, “Once again, short-term Bitcoin investors sold approximately 20,000 BTC at a loss and sent them to cryptocurrency exchanges. This is the fourth highest amount counted as a loss throughout the year. This situation will continue to contribute to the record difference between the supply controlled by long-term investors and short-term investors.”
BTC’s price is still trading below $26,000, which increases its vulnerability to further drops below $25,000. As the price moves upward, investors and traders need to be cautious as it is still possible for it to drop to $23,500.
