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Bitcoin, often influenced by decisions made by long-term holders (LTH), has witnessed significant selling activity among this investor group over the past week.
While the reason behind Bitcoin’s long-term holdings is not certain, the move appears to have had an impact on BTC, leading to the recent price correction falling below $70,000.
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Bitcoin’s long-term holders are starting to cash out
According to one analysis shared by Crypto analyst Maarunn, long-term holders have sold approximately 177,617 BTC in the past seven days.
Based on data from IntoTheBlock, this trend shows a pattern in which long-term Bitcoin investors tend to reduce their holdings during price increases, a behavior often seen as a “contrarian indicator” in the crypto market, Maartunn reveals.
Typically, these LTHs, which hold Bitcoin with a longer investment horizon, tend to buy during recessions and sell during price increases.
Maartunn pointed out that similar patterns were visible during previous bull markets in 2018, 2021 and 2024, indicating a possible strategic response to Bitcoin’s recent price movement.
Bitcoin long-term holders (🔵) have sold 177,617 BTC in the last 7 days
This chart shows balance changes over time and provides insight into the movement of older Bitcoin. These older coins, also called Long-Term Holders (LTH), are typically owned by investors with a long-term… pic.twitter.com/wiCVdIbf9e
— Maartunn (@JA_Maartun) November 4, 2024
As Bitcoin’s price recovers and returns to levels above $68,000, the allocation of holdings among long-term investors suggests cautious positioning, even as many expect a possible continuation of the uptrend.
Technical analysis highlights the key levels to look out for in Bitcoin
As Bitcoin continues to trade around crucial levels, another prominent analyst known as CryptoBullet has shared his views on the asset’s recent performance and possible upcoming moves.
Despite Bitcoin’s brief dip below $70,000, CryptoBullet expressed limited concern: noticing that assets have maintained three weekly closes above a major resistance line, indicating resilience.
Third weekly closing above the Resistance Line 👌
Do I care about that fuse? Not really. We didn’t hit the March high so it’s not that dangerous imo.
There will be new ATH anyway 🚀 https://t.co/mVsvJOZMpI pic.twitter.com/sjm4ek9Jsg
— CryptoBullet (@CryptoBullet1) November 4, 2024
According to his analysis, although Bitcoin has not yet broken past the previous record set in March, the current consolidation phase is not necessarily a cause for concern.
CryptoBullet further marked a few key price zones, specifically between $65,000 and $66,000, which he considers crucial for determining Bitcoin’s short-term trend. Should Bitcoin fail to hold these levels, a decline towards the $60,000 to $61,000 range could be expected.
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However, he remains optimistic about a bullish long-term outcome, suggesting that once these levels are tested, Bitcoin could resume its upward trajectory and eventually reach new all-time highs.
Featured image created with DALL-E, Chart from TradingView
Credit : www.newsbtc.com
