Long-time holders are starting to profit, can Bitcoin secure $ 60,000?

The Zhitong Financial app discovered that Bitcoin was trading in a narrow range on Tuesday due to the strong sentiment that seemed cool with the price once falling below $ 60,000. At press time, Bitcoin was down 4.37% per coin at $ 60,344.7.

The Bitcoin Fear & Stability Index began to drop from its seven-month high, indicating that buyers were starting to benefit after Bitcoin prices rose nearly 45% the previous month.

In the Bitcoin futures market, the leveraged Chicago Mercantile Exchange (CME) increased its short position in Bitcoin on the weekend of October 19, which hit all-time highs, according to CoinDesk. The price varies between futures and retail prices.

Current reports suggest a correction for Bitcoin after the price of Bitcoin fell to support levels near $ 60,000 earlier this week.

Some investors choose to profit

Blockchain data shows long-term Bitcoin holders have started making money. This usually happens when Bitcoin hits all-time highs.

According to the Glassnode article, given the current price cycle, long-term holders are more likely to be affected by corruption compared to the end of the bull market.

The graph below shows the importance of Bitcoin during the Bitcoin price drop in mid-September. Despite the low interest, Glassnode said the current position of long-term investors is in line with the initial phase of the bull market.

Bitcoin balance exchange drop

The exchange's Bitcoin balance continues to decline, indicating that many traders have chosen to place their bitcoins in digital wallets instead of trading them on the exchange.

“Bitcoin equivalents to commodities are at a level not seen since January 2018,” Arcane Research said.

Tap root upgrade

The Bitcoin Taproot update, launched on November 16, aims to improve the privacy of certain networks on the network with an update called “Schnorr Signature”.

The change also enables lighter "smart contracts", which are the blockchain storage services that run when certain metrics are encountered. Smart contracts have always been a key part of competitive Ethereum networks, driving the rapid growth of DeFi applications.

The last major update to the Bitcoin network took place in July 2017, and the price of the cryptocurrency rose almost 50% before August 23. Now, with the first blockchain network planning a major overhaul in November, this update is called Taproot and a few investors are expecting a huge price response.

Lyllah Ledesma of CoinDesk believes the value of Bitcoin will rise further, but Taproot itself will not be the catalyst.