The chances of another sell-off to $30,000 are slim, according to on-chain data
Bitcoin (BTC) broadly held levels at $44,000 and above on Feb. 16 amid fresh optimism that another macro low would be avoided.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
OBV sparks 2021 recovery comparisons
BTC/USD rebounding after an overnight dip to $43,725 on Bitstamp.
In a tightening range, the pair looked increasingly primed for a breakout up or down Wednesday, as support and resistance levels stayed within a short distance of spot.
While fears that a stocks correction could cause fresh pain for bears remained, one analyst, in particular, argued that there was now hardly any impetus to sell BTC after three months of downside.
“When I consider everything BTC HODLers withstood in 2021- When I observe global de-risking for 3+ months- When I see 48% of Realized Cap STILL held from 3–12 months ago after a $33k scare- I ask: with all existing FUD priced in, barring surprises, who remains to sell here?” TXMC argued.
An accompanying chart highlighted coins that last moved between three and six months ago — the run-up to the $69,000 all-time high — growing as a proportion of the overall BTC supply.
On-balance volume, a metric designed to estimate buy and sell pressure, likewise recovered in a style that popular education resource IncomeSharks claimed mimicked last year’s rebound from $30,000.
“These are the conditions where retail waits to buy Bitcoin after it’s at an all-time high and it’s all over the news again,” it added in a tweet on the day.
“Meanwhile the whales and smart buyers who loaded up near $35,000 will 3x their money if we go to $100,000.”
Despite the recovery from last month’s lows, interest in Bitcoin stayed practically nonexistent from mainstream sources, with Google Trends data showing a distinct lack of curiosity from users.
Google search data for “Bitcoin.” Source: Google Trends
AVAX leads top 10 altcoin gains
ETH/USD briefly hit $3,200 before returning to consolidate, still at five-day highs.
Meanwhile, the top 10 cryptocurrencies by market capitalization were led by Avalance (AVAX), which put in 24-hour returns of over 10% to continue its success in recent weeks.