Bitcoin creeps back over $40K, with buying pressure from long-term hodlers

Bitcoin returned supra $40,000 connected February 4 aft a adjacent 6% driblet a mates of days before, and BTC is trading up 8.3% connected the week. The marketplace has turned bullish, however, the Bitcoin Fear and Greed Index is inactive pointing to utmost fear. Bitcoin’s selling unit seems to person diminished arsenic the premier cryptocurrency is trading astir $40,300 astatine the clip of writing.

Zooming out, BTC is inactive down 41.5% from its all-time-high astatine $69,044 connected the 10th of November past year. Looking astatine this year, bitcoin is down astir 15% since January 1st.

Most assets are trading successful the green

In the broader cryptocurrency market, astir assets were trading successful the greenish astatine property time. Ethereum (ETH), the second-largest cryptocurrency by marketplace cap, has its sights connected the $3000 people but is trading astatine $2940 astatine the clip of writing, up 1.8% connected the time and up astir 22% connected the week.

According to Coingecko data, Ethereum is inactive down 39.5% from its all-time-high astatine $4878, besides acceptable connected the 10th of November, contempt a beardown summation the past 7 days.

As the Crypto Fear and Greed Index, an scale that measures marketplace sentiment, remains successful ”extreme fear,” traders inactive look to beryllium successful a fearful mood.

Buying unit is coming from medium- and semipermanent holders

Speculation seems to person calmed down successful the marketplace arsenic the fig of Bitcoin addresses holding the plus for little than 1 period has decreased by 32.07% since the 28th of December, according to analytics information from IntoTheBlock. As per this data, it seems arsenic the buying unit is coming from medium- and semipermanent holders who person been accumulating astatine caller prices.

Speculation has faded from the #crypto markets.

The fig of $BTC traders – addresses holding for little than 1 month, person decreased by 32.07% since December 28th.

The buying unit is present coming from mean and semipermanent holders which person been accumulating astatine these prices. pic.twitter.com/xkIt10TKBW

— IntoTheBlock (@intotheblock) February 3, 2022

This displacement successful buying unit is confirmed by information from Santiment arsenic well. According to the on-chain analysis, Bitcoin’s trading measurement saw a bid of large spikes this past year, astir each aft terms drops. Crypto bulls look for lowering trading measurement erstwhile BTC falls, arsenic it indicates minimal involvement by the crowd, and higher probability of a reversal.

Also from Santiment data, galore alleged altcoins person softly crept backmost and inched toward their pre-slide prices. Particular standouts implicit the past 7 days see MANA (+22%), XTZ (+31%), MKR (+32%), QNT (+53%), and CCXX (+65%).