Quicktake’s recent analysis on CryptoQuant on-chain analytics platform He emphasized how Brief-term Bitcoin (STH) Holders the behavior is similar to that of 2019. This analysis comes as Bitcoin remains below $60,000, continuing the downtrend from September.

Bitcoin miniature holders peak similar to 2019 structure

CryptoQuant Contributor Avocado_onchain excellent that there was a “small peak” in Unused Trading Results (UXTO) over the course of six months, which is reminiscent of a similar pattern observed in 2019. The analyst explained that these UXTOs shorter than six months are up-to-date investors (or short-term holders) who entered the market around March of this year when the price of Bitcoin reached up-to-date all-time record (ATH).

According to the analyst, the decreasing share of these UXTOs suggests that these investors have either exited the market due to bitcoin’s volatile price action since March or they held on to it and have now switched to long term holders (UTXO lasting six months or longer).

The attached chart showed that a similar structure was in place around the 2019 halving, when Bitcoin also reached a local peak. After that, Bitcoin price cooled down and took almost 490 days to reach a up-to-date ATH, although Avocado_onchain noted that it was also impacted by the COVID-19 pandemic.

The development undoubtedly provides insight into what Bitcoin investors could expect from the flagship cryptocurrency in the long term, even as its price remains volatile. Avocado_onchain noted that he is confident about Bitcoin long term upward trend. In the miniature term, however, he believes it would be wise for investors to “curb expectations and monitor the market closely.”

Meanwhile, while the analyst admitted there is no clear trigger for a Bitcoin breakout, he noted that capital inflows from up-to-date investors have historically been key to Bitcoin’s price growth. Bitcoin reached a up-to-date all-time high in March after the launch Spot Bitcoin ETFwhich introduced a up-to-date currency to the Bitcoin ecosystem.

Bitcoin appears to continue its downtrend in September

Bitcoin seems to continue its bearish september trend this year, with the flagship cryptocurrency already down more than 4% since the beginning of the month. Historically, September it is known to be a bear month because data Coinglass shows that Bitcoin has suffered a monthly loss in six of the last seven months in September, dating back to 2017.

After his simulation Bitcoin prices this month, CryptoQuant’s head of research said, Julio Morenomentioned that the flagship cryptocurrency could end the month at $55,000 on average. Moreno had mentioned earlier that a decline in Bitcoin’s price below $56,000 puts the cryptocurrency at risk of a deeper price correction and entering a prolonged downward phase.

For now, the cryptocurrency community is hopeful that the US Federal Reserve will cut interest rates at the next FOMC meeting, which will be held on September 17 and 18. The interest rate cut is he believed be a factor that could affect the price of Bitcoin and lead to breaking through the USD 60,000 level.

At the time of writing, Bitcoin is trading at around $56,400, down more than 4% in the past 24 hours, according to data data from CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com