Decentral Block Post

Glassnode’s latest analysis suggests that Bitcoin has built a strong foundation below the $30,000 level, and the current supply structure shows similarities to early 2016 and early 2019.

The report shows that the Long-Term Holder (LTH) supply is just shy of a new all-time high, with a total supply balance of 14.161 million Bitcoin (BTC). In contrast, short-term holders (STH), who acquired coins after FTX failed, have seen their supply balance of 2.914 million BTC remain relatively constant in 2023.

By April 12, 155 days had passed since the FTX exchange collapsed on Nov. 8, 2022. The 155-day mark is crucial because it is the minimum length of time that a Bitcoin holder must have held their coins to be classified as a long-term holder (LTH).

Thus, the supply distribution can be divided into two halves, first, before FTX’s collapse to represent LTH supply, and the other after, to represent short-term holders.

The report also drew a comparison of previous market cycles based on LTH behavior expressed via changes in their supply. It noted that Bitcoin is currently experiencing a period of “Plateau of Patience,” where LTH supply tends to hover around its ATH, often from several months to over a year.

Pullbacks are a part and parcel of uptrends. They not only help shake out the weaker hands but also offer an opportunity for traders to add to their position or make fresh entries. Currently, Bitcoin (BTC) is witnessing a correction as bulls and the bears battle for control, but is this a buying opportunity or the start of a trend reversal?

The Crypto Fear & Greed Index has risen to 69, indicating that traders have started to get greedy again. When this happens, it is time to become cautious in the near term because when new traders begin chasing prices higher, experienced traders sell into strength and buy on dips.

ARK Invest CEO Cathie Wood said in a recent interview that Bitcoin and Ether (ETH) are being considered as safe haven assets like gold. Meanwhile, Bridgewater Associates founder Ray Dalio does not consider Bitcoin to be “an effective store hold of wealth or a medium of exchange.” He called it “a very, very poor alternative to gold.” This shows that some legacy investors are still uncertain about the future prospects of Bitcoin.

Will traders buy the dip in Bitcoin and the major altcoins or could the correction deepen further? Let’s study the charts to find out.

S&P 500 index price analysis

The S&P 500 index (SPX) has been gradually moving toward the overhead resistance at 4,200. The price action of the past few days has formed an ascending triangle pattern, which will complete on a break and close above 4,200.

On April 17, the price of Solana (SOL) crept lower in the wake of similar price moves across the top-ranking cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).

SOL's price dropped over 4% under $24.50 despite rising to $26 — a two-month high — earlier in the day.

In comparison, BTC's and ETH's prices dropped 3.5% and 3%, respectively, hinting at a bearish start to the week.

SOL price in a technical correction

The SOL/USD selloff on April 17 started after it entered its 2023 resistance range.

Notably, the $25-27 price area has capped Solana's upside attempts since January 2023. Testing it as resistance has preceded 25-40% corrections on multiple occasions this years, as illustrated below.

On April 17, the price of Solana (SOL) crept lower in the wake of similar price moves across the top-ranking cryptocurrencies, including Bitcoin (BTC) and Ether (ETH).

SOL's price dropped over 4% under $24.50 despite rising to $26 — a two-month high — earlier in the day.

In comparison, BTC's and ETH's prices dropped 3.5% and 3%, respectively, hinting at a bearish start to the week.

SOL price in a technical correction

The SOL/USD selloff on April 17 started after it entered its 2023 resistance range.

Notably, the $25-27 price area has capped Solana's upside attempts since January 2023. Testing it as resistance has preceded 25-40% corrections on multiple occasions this years, as illustrated below.

Tether (USDT) has emerged as a clear winner amid the ongoing banking crisis and crypto crackdown in the U.S.

On April 17, the U.S. dollar-pegged stablecoin's circulating market valuation reached nearly $81 billion, just 1.5% below its record high of $82.29 billion from a year ago. It has grown about 20% year-to-date (YTD) already and is now eyeing new all-time highs.

Tether rivals hit new yearly lows

USDT's growth came as Tether ate up the market share of its stablecoin rivals, USD Coin (USDC) and Binance USD (BUSD). That is due to crypto traders' belief that Tether's operations have no exposure to the potential banking crisis contagion.

For instance, the circulating market capitalization of the USD Coin, the second-largest stablecoin, has dropped over 25% YTD to $31.82 billion, its worst since October 2021, primarily due to its exposure to the failed Silicon Valley Bank. 

BUSD, on the other hand, has witnessed a 60% drop in market capitalization in 2023 to $6.68 billion, its lowest since April 2021, as the New York Department of Financial Services (NYDFS) ordered Paxos, a regional crypto firm, to stop its mint and issuance. 

Tether (USDT) has emerged as a clear winner amid the ongoing banking crisis and crypto crackdown in the U.S.

On April 17, the U.S. dollar-pegged stablecoin's circulating market valuation reached nearly $81 billion, just 1.5% below its record high of $82.29 billion from a year ago. It has grown about 20% year-to-date (YTD) already and is now eyeing new all-time highs.

Tether rivals hit new yearly lows

USDT's growth came as Tether ate up the market share of its stablecoin rivals, USD Coin (USDC) and Binance USD (BUSD). That is due to crypto traders' belief that Tether's operations have no exposure to the potential banking crisis contagion.

For instance, the circulating market capitalization of the USD Coin, the second-largest stablecoin, has dropped over 25% YTD to $31.82 billion, its worst since October 2021, primarily due to its exposure to the failed Silicon Valley Bank. 

BUSD, on the other hand, has witnessed a 60% drop in market capitalization in 2023 to $6.68 billion, its lowest since April 2021, as the New York Department of Financial Services (NYDFS) ordered Paxos, a regional crypto firm, to stop its mint and issuance.