Bitcoin traders are rushing to the sidelines, the Halving can be the reason.
Bitcoin is currently trying to understand the enormous resistance that has been set in the region of the upper $6,000, the moment when the continuous uptrend BTC reverses from the $6,600 rise.
This volatility naturally leads to an increase in activity among retailers, but data suggests that many are sidelined at this point.
Adding to the fact, investors are increasingly withdrawing bitcoins from the exchange wallet, suggesting that investors can now resort to long-term investment strategies instead of short-term elation.
Bitcoin appears to be trading in the long-term, with its key support and reaction to resistance levels directly above and below its current support price, perhaps setting the tone for the year ahead.
Although benchmark cryptocurrency trading is decisive, investors are not keen to try to trade in imminent volatility as the BTC’s public interest in bitcoin has fallen significantly above its multi-day highs.
Data from the blockchain research and analytics platform Glassnode also makes it clear that merchants are moving Bitcoin away from the exchange wallet, indicating that they are moving it to cold storage as part of a long-term storage strategy.
While the short-term implications of bitcoin’s imminent mining rewards are widely debated, historical precedent has been a rapid catalyst, with some analysts claiming that it is highly hypnotised and a major disappointment for investors.
However, this may be a factor that drives investors to the brink of uncertainty about how bitcoin will affect the price.
According to Google Trends data, searches for the words “bitcoin hauling” and “hauling” have been in the works for the past few weeks, 27 days before the award.
This phenomenon also leads to a reduction in public interest in crypto, as traders do not want to get on the wrong side of trading due to any unexpected effects on the BTC.