Bitcoin at $25,000: Market optimism triggers return of ‘buy the dip?’
February 22, 2023
By Abiodun Oladokun
Read Bitcoin’s [BTC] Price Prediction 2023-2024
BTC’s price briefly touched the $25,000 price mark last week for the first time since June 2022.
On-chain activity suggested that investors anticipate that prices will rally past that point soon.
Amid tightening regulatory oversight, and negative investors’ sentiment, Bitcoin’s [BTC] price momentarily traded above the $25,000 price mark last week.
While this represented a new price action for the king coin for the first time since mid-June 2022, Glassnode, in a new report, found that BTC’s on-chain investor activity seemed to be on the cusp of a new cycle, indicating a possible turning point.
A resurgence of the “buy the dip” mentality?
As BTC trades below $25,000, on-chain activity revealed that investors expect the leading coin to reclaim the price position and have begun to “buy the dip” in anticipation of the same.
Glassnode assessed BTC’s Short-term Holder Dormancy metric on a 30-day moving average and found that in the current market, short-term holders “are spending coins with a more extended holding period.” According to the report:
“This is typically seen in bullish impulses, as expectations of gains encourage investors to hold on a little longer and ride the market swing.”
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