Key Points
- Long-term holders of Bitcoin have decreased their selling by 60%, indicating a confidence in future price increases.
- These investors are now aiming for the $120k mark to start selling again, which could lead to substantial selling pressure.
Bitcoin’s long-term holders are showing signs of confidence in the cryptocurrency’s future, as evidenced by a significant reduction in their selling activities. Despite the volatile market conditions, these investors are holding onto their Bitcoin rather than selling it, reflecting an optimistic outlook for future price increases.
Reduced Selling Pressure
According to Axel Adler’s analysis, long-term Bitcoin holders have reduced their selling by 60% compared to the $90-100k level. This decrease in selling activity has resulted in less Bitcoin entering the market, thereby reducing selling pressure. These investors are now setting their sights on the $120k mark before they consider selling again.
At this price point, long-term holders stand to make a 500% profit on their Bitcoin investments. Despite the market conditions, the potential for such a significant profit margin could entice them to sell. If Bitcoin reaches $120k, the market could face immense selling pressure as long-term holders start to take profits.
Bitcoin Market Indicators
The Long-Term Holder SOPR (Spent Output Profit Ratio) has dropped from a high of 5.7 to 2.7 over the past 10 days, indicating that long-term holders are selling less. Additionally, Bitcoin’s Mayer Multiple, a measure of Bitcoin’s price relative to its historical average, has declined to 1.2, suggesting that Bitcoin is trading near its fair value.
Bitcoin’s Large Holders Netflow to Exchange Netflow Ratio has also decreased from 5.59% to 0.92% over the past two weeks. This suggests that large holders are transferring fewer of their Bitcoin holdings to exchanges, indicating a decrease in selling activity.
Overall, the market conditions indicate a cooling down of profit-taking behavior, particularly among long-term holders. If this trend continues, it could potentially help Bitcoin reclaim the $100k level. However, with sellers still active, Bitcoin may continue to trade sideways until it finds momentum for another upswing.