Bitcoin Retail Crowd Still Missing, Can They Push BTC Above $70,000?

Bitcoin price has been stuck within a range below $70,000 for quite some time now. Attempts to break above this level have been brief and unsuccessful as the digital asset failed to sustain the upward momentum.

Interestingly, new research revealed that the retail audience isn’t here yet.

The retail Bitcoin crowd is not here yet

According to the latest CryptoQuant analysis, the current BTC market cycle has not yet reached its peak euphoric phase. An important characteristic of the tops of the previous cycle was the dominance of coins held for less than 3 months, indicating that long-term holders (smart money) had already taken profits. This has left the market controlled by speculators and new entrants. This scenario leads to greater volatility.

In the current cycle, however, holding BTC for less than 3 months is only about 35% of the realized cap, and according to CryptoQuant, this level is comparable to the early stages of previous bull markets.

Furthermore, the level of profit realized among short-term holders, as measured by the SOPR, has not yet surpassed the all-time highs seen at the peaks of the previous cycle, and the current market structure was dominated primarily by long-term holders who formed solid price support. base

This case presents an upside amid a lackluster market due to a “relative scarcity” of short-term holders, suggesting that a sharp transition to a bear market is less likely and there is still potential for a rise in prices.

“This robust structure and the relative dearth of short-term holders make an immediate transition to a bear market less likely, indicating that there is still potential for a significant rally before the top of the cycle forms.” .

Bitcoin holders show fear

Despite signs of more upside potential, BTC holders experienced the biggest 3-day drop in non-empty wallets, coinciding with a drop in its price.

Santiment said this could encourage traders to liquidate their holdings for fear of further price falls.

The same cannot be said for Ethereum wallets, on the other hand, which continued to grow, indicating sustained interest and accumulation in the largest altcoin. This divergence in wallet activity suggests that Bitcoin is currently facing selling pressure.

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