Galaxy Digital Research Director: $25,000 is an important technical support level for Bitcoin, and long-term investors continue to increase their holdings
ChainCatcher message, Galaxy Digital's research director Alex Thorn analyzed the impact of Bitcoin's drop of over 10% within a few hours on August 17, experiencing deleveraging and breaking the long-standing low volatility of Bitcoin.
The main points are as follows:
The open interest in the Bitcoin futures market saw its largest decline since the FTX collapse in November 2022, evaporating over $2.75 billion.
Short-term holders are facing significant unrealized losses, which may lead to further declines in the short term.
Long-term holders continue to accumulate, with over 40% of Bitcoin supply held for more than three years, reaching an all-time high.
Small holders (<=10 BTC) have not yet increased their holdings to the levels seen during other downturns in 2023.
$25,000 is an important technical support level.
He stated that this rapid decline has cleared a significant amount of leverage, resulting in the most thorough reset of the Bitcoin market since the FTX collapse. In the absence of strong positive catalysts, the recent trend remains primarily downward, with $24,000 and $25,000 seen as key support levels. In fact, if there is no quick rebound in the short term, nearly 90% of short-term holders are in a loss position, which will bring further downward pressure. Both long-term holders and small holders are continuing to accumulate.
