The year 2022, has not been favorable for long-term crypto investors. The bears had dominated the market for long pushing down the price of Bitcoin to two years low at $15461. While many had anxiously waited for a free fall in Bitcoin prices having lost the strong support at $17,579, Bitcoin has rather shown great resilience bouncing back from the new low and now trading above the 16K region.
The great resilience seen in Bitcoin price in resisting the selling pressures which would have resulted in a free-fall, pushing the price to the next support level at 13K has been due to the presence of large HODLers who have refused to give up their bags. Can the HODLers succeed in defending the price of Bitcoin above this level? Is the present level a good time to buy Bitcoin or will the HODLers be defeated? This work has examined these important questions about Bitcoin resilience today.
Meaning of HODLers
The term HODLers is a common crypto jargon used to refer to long-term crypto investors. This category of traders are known to purchase a given cryptocurrency when their prices are fairly low and keep on holding their bags till their set target is achieved over time.
Bitcoin price sustains above 16K amidst increased selling pressure: A reason to thank HODlers?
The fact that Bitcoin prices have managed to sustain above 16K despite the increased selling pressures coming into the market up to this point is a reason to thank HODLers. Without the determination of the HODLers to hang on to their investment, the price of Bitcoin would have witnessed a free-fall after it lost the support at $17579.
The impact of HODLers in sustaining Bitcoin price today
One major factor that could lead to a free-fall in Bitcoin prices during the bear season is when everyone is selling with no one buying. This results in continuous fall over time without any attempt at bouncing back.
However, the reverse has been the case for Bitcoin during this protracted bear season witnessed in 2022. While the bears dominated the market, the bulls made several attempts to push back the price again after each important support level was lost. Thus, Bitcoin has managed to stay above 16K for the past three weeks after it lost a critical support level at $17579. Losing this level ought to have resulted in a massive crash that could push the price down to 13K and even lower to $10,450 which is the major strong support for Bitcoin at this point.
Nonetheless, it appears not everyone is willing to give up their Bitcoin holdings at this point as a lot of HODLers are currently defending Bitcoin from crashing further. Can the HODLers succeed?
The HODLers can only succeed when more buyers are willing to come into the market again. Looking at the current market reaction so far at this level, it appears new investors still consider the present level high for them to come into the market. Bitcoin needs to reclaim the support at $17,579 to convince investors that the bulls are in charge again. Otherwise more falls could be witnessed in Bitcoin prices ahead of the coming Fed session in December.
Is HODLing a good strategy for trading Bitcoin?
The term Hodling means buying lower and keeping on to one’s bag till a set higher target is achieved in the future. An important advantage of Hodling in Bitcoin trading is that it helps the trader limit losses arising from buying and selling frequently due to panic especially when the price goes below his entry-level.