Bitcoin Price Flashes a Hidden Uptrend Signal Amid One 96% Problem

Bitcoin (BTC) price trades near $82,300, still up about 28% over three months after this week's drop.

A hidden momentum signal on the daily chart suggests the uptrend can survive. The catch is that buying from long-term holders has dropped 96%.

A Hidden Signal Says the Uptrend Is Still Alive

Between September 2 and October 8, Bitcoin made a higher low on the daily chart. Meanwhile, the Relative Strength Index (RSI), which measures buying momentum on a 0 to 100 scale, slid from about 65 to 47, a lower low.

That mix is called a hidden bullish divergence. It shows up inside uptrends and suggests a dip has cooled momentum without breaking the trend.

Selling volume backs the read. Red volume bars have grown since October 6, but the October 8 bar was still about 18% smaller than the October 2 peak. Sellers are pushing, yet with less force than a week earlier.

So why did momentum fall harder than price? The buyers may explain it.

Fading Holder Buying Explains the Momentum Drop

Hodler Net Position Change, a Glassnode metric that tracks the monthly change in coins held by long-term holders, peaked at 25,734 BTC on September 20. By October 8, it had dropped 96% to 1,051 BTC, its weakest positive reading in three months.