Bitcoin holders have not yet surrendered despite the weakening price.

The price of Bitcoin has maintained a steady downtrend since the end of February, continuously facing barriers as it attempts to conquer the $85,000 mark.

Although recent fluctuations show that Bitcoin has not yet been able to break through this important threshold, the sentiment of large investors seems to remain steadfast. Despite the challenges, many continue to "HODL," demonstrating a strong belief in the long-term prospects of this leading cryptocurrency.

Bitcoin investors remain optimistic

The velocity of Bitcoin – a metric that measures the circulation of this cryptocurrency – has dropped to its lowest level in 5 months last week. The decrease in velocity reflects the caution of investors, with the number of transactions significantly declining. As circulation slows down, the price of Bitcoin often tends to grow at a slower rate, and this has occurred recently.

This decline indicates that market sentiment is somewhat hesitant, causing the recovery momentum of Bitcoin prices to become less vibrant. This cautious behavior is also clearly reflected in the current market developments.

The circulation speed of Bitcoin | Source: GlassnodeHowever, contrary to the cautious short-term sentiment, the group of investors holding Bitcoin in the medium term (from 3-6 months) is increasing asset value during this period. These holders are gradually shifting to the long-term investor group (LTHs), indicating a growing confidence in Bitcoin. Notably, many of these Bitcoins were purchased near the all-time high, and their continued retention shows strong confidence from investors.

Spending activity from this group of long-term investors has hit its lowest level since mid-2021, reflecting a trend of reluctance to sell even during periods of market volatility. The decrease in selling pressure is a positive signal, as it indicates that key investors remain committed to maintaining their positions and are not easily surrendering to market downturns.

Source: Glassnode## Can Bitcoin recover from the recent losses?

At the time of writing, the price of Bitcoin is at $83,403, just below the important resistance level of $85,000. Earlier this week, Bitcoin briefly surged to $88,500, but then decreased again as new tax levels were announced on Trump's Liberation Day. This had a negative impact on short-term market sentiment; however, the price of Bitcoin remains above $80,000.

Looking ahead, Bitcoin could recover if the support from long-term investors remains strong. However, the prerequisite is that Bitcoin must reclaim the $85,000 level as support. A sustainable recovery will occur when Bitcoin breaks out and closes the daily candle above $89,800.

BTC/USDT Weekly Chart | Source: TradingViewConversely, if Bitcoin fails to break the $85,000 level and circulation remains low, the price may return to the next important support area at $80,301. This scenario would weaken the bullish outlook, leading to a longer accumulation phase or even a short-term downtrend.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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