Bitcoin’s March to $100K Spurs FOMO: Impact on Two Crucial Sectors Uncovered

Increased Activity and Sell Pressure: Exploring the Dynamics Behind Bitcoin's Potential $100K Milestone

"Bitcoin's March to $100K Spurs FOMO: Impact on Two Crucial Sectors Uncovered"

Key Points

The recent rally of Bitcoin (BTC) has led to a significant increase in active addresses, suggesting a strong sense of Fear Of Missing Out (FOMO) among investors. This surge in activity is not only a sign of confidence in the current market state, but also indicates that many do not want to miss out on the rally.

According to data from CryptoQuant, the number of active Bitcoin addresses was as low as 766,947 on November 3rd. However, it has since rallied to over 1.18 million addresses as of November 12th. This increase in active addresses is directly proportional to the price, reflecting the heavy ETF inflows observed during the same period.

Increasing Selling Pressure?

While the increase in active addresses contributes to bullish momentum, recent data suggests that profit-taking is starting to intensify. This is particularly true for a certain group of HODLers who have been holding Bitcoin for 6 to 18 months. Data shows that selling has started to accumulate from buyers as far back as May 2023, with those holding until recently reaping over 200% gains during those 18 months.

CryptoQuant data indicates that these are mid-term holders, with an average entry point in the $28,000 price range. Approximately 230,000 BTC moved from addresses holding for 6 to 12 months, and about 41,500 BTC moved from addresses holding for 12 to 18 months, from November 3rd to 12th.

Potential Pullback on the Horizon?

A spike in selling pressure from mid-term hodlers could suggest that Bitcoin is due for a significant pullback. After peaking at $89,940 during the trading session on November 12th, Bitcoin has shown signs of bullish exhaustion and increased selling pressure. Bearish expectations are rising due to the deeply overbought price.

The increased selling pressure from mid-term holders not only confirms a surge in profit-taking but also suggests that long-term holders may be anticipating pullbacks following Bitcoin’s recent rally. Despite the possibility of a pullback at current levels, bullish expectations remain high, particularly as we approach 2025.

The surge in active addresses suggests that FOMO could maintain a higher price floor and encourage more buying. Investors continue to view Bitcoin as an attractive option below $100,000.

Exit mobile version