Bitcoin's Rejection At $66,000 Sets the Stage For a More Resilient Long-Term Price Outlook

The Bitcoin price action in the past two weeks has reiterated its volatile nature despite the steady flow of institutional money.

The recent Bitcoin price action in the past two weeks has highlighted its volatile nature despite the steady flow of institutional money. The cryptocurrency surged in the last days of September from $53,500 to a high of $66,000, only to pull back to $61,000 in the first few days of October.

However, an interesting development occurred during Bitcoin’s rally to reach $66,000, which led to a change in the investing dynamics among holder cohorts. This change in dynamics reveals that its reversal and retest after the rally might not be entirely bad news for Bitcoin’s price. In fact, this shift suggests that the pullback could be setting the stage for a more resilient long-term price outlook for Bitcoin.

Bitcoin’s Rejection At $66,000

Bitcoin’s recent break above $66,000 last week for the first time since June to create a higher high was highlighted by on-chain analytics platform Glassnode in a recent report. Having earlier created a higher low of $53,000 in September, Bitcoin eventually went on to break above the August high of $64,500. According to the report, the creation of this higher high led to a change in the profitability of short-term and long-term holder cohorts, with many more bitcoins moving into the long-term threshold.

Particularly, the recent rally has seen many coins acquired in close proximity to the $73,780 all-time high now being held for over 155 days. This, in turn, has seen many of these coins, which are in losses, now moving to long-term holder status. While only 6.54% of long-term holders are in losses, they account for