Bitcoin prices have been struggling over the past 30 days, falling more than 6%, while Ethereum rose more than 16% over the same period. Last week, BTC slid another 2%, currently just under $111,000.
This level is important as the invalidation points are at about $108,600. The breakdown there could expose Bitcoin to deeper losses. Still, the on-chain signal suggests there may be opportunities for rebound, with one key group of investors flashing the strongest bullish signs of the month.
Profit supply is once again approaching low locality
One of the key on-chain measurements for Bitcoin is the percentage of profit supply.
On August 25th, the percentage fell to 88.53%, near the 3-month low of 87.02% recorded on June 22nd.
A similar pattern was also taken place on August 2, when metrics fell from a high of 98.91% to 91.64%. After that decline, Bitcoin prices rose almost 10% in 10 days.
These examples show that if there are fewer owners, there is less incentive to sell. In this case, the metric can also indicate a sense of weakness or panic sales, but in this case you are sitting near the level that previously caused a strong upward movement.
This is why tracking the supply of profit metrics is important, but it should not be read on its own.
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Long-term investors turn net buyers
This time, the stronger signal comes from long-term investors, often referred to as “Hodlers.” Changes to the net position indicate whether they are adding or reducing Bitcoin Holdings each month.
Since late July, the group has been on the sidelines or even sales, keeping the indicators almost negative. The only short green sign was on August 24th. This coincided with a small price bounce of around $110,000 to $111,000, but it didn’t last as sales resumed soon.
However, the metric is now clearly positive for the first time in a month, showing an increase of 3,429 BTC.
This is the strongest accumulation signal since late July. When this long-term investor group of this same group lasted a major shift towards accumulation, they were lined up in the same period around June 22nd. Profit supply collided with its lows and Bitcoin recovered It’s up 22% from $101,084 to $123,313.
That history makes this change important. Rather than quickly cashing out these investors, they can provide another rebound base if they continue to add.
Bitcoin price level and rebound zone to watch
At the time of pressing, Bitcoin is a transaction price of less than $111,000. It has already broken the key support around $111,074, with the next immediate support at $110,50, and the deeper safety net at $108,600.
If the final level gives way, bearish cases will bolster and disable BTC price rebound calls. This can happen when Hodler-led bullish signs disappear.
However, the problem is different. The initial rebound zone will be around $113,400. Recovering and holding above that level is not only a short bounce, but it can also give the price of Bitcoin signal strength and increase again.
Post Bitcoin prices have recovered after the Hoddlers Flash Month-High Bullish signal first appeared on Beincrypto.
