Today, prices have held firm above $56,600, and the longer they do so, the greater the chance that the past two weeks have just been a healthy correction in a market that burst higher and felt unstoppable.
If we look at the behavior of the two key players, long-term holders and miners, we can see that they have been totally unfazed by the volatility.
The long-term holders have not been reducing their positions: They have been doing what they do best, hodling. Since the start of April, their net positions have been building.
It's the same picture for the miners. Total coins being sent from miner wallets have remained steady and low, showing that the price swings are not creating any knee jerk reactions.
The action and movements have been led by the new Bitcoin crowd, who, should we march back up to $61,700, will have learned a valuable lesson. Buy and hold through dips, don't sell them.
...Just like the old-hands and the life-blood of Bitcoin, the miners.
Bitcoin has struggled to break out from its $56,600-$58,800 range again today. Trade has moved from support to resistance, as neither the bulls nor the bears could exert control.
A break below $56,600 will see Bitcoin trade back down to support at $54,200, ahead of the key support level at $53,130 being re-tested.
On the upside, a close above $58,800 will line Bitcoin up for another interesting weekend trading session. The big target for the bulls is $61,700. Only once this level is recaptured can any thoughts of a new ATH return.
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