as Bitcoin price continues its upward momentumOn-chain data reveals that long-term Bitcoin holders have begun selling their assets. Historically, similar market behavior has coincided with market tops in the 2021 bull cycle, raising the question of whether the leading cryptocurrency is finally approaching its peak. Market peak.
Are long-term Bitcoin holders selling, and is the market at higher levels in the future?
Bitcoin price was in a strong uptrend after that Donald Trump wins In the US presidential elections. Before climbing to the previous $100,000 ATH, BTC saw a Increase in accumulationMost whales choose to keep their possessions rather than sell them.
but, Data on the string It revealed that long-term Bitcoin holders have begun Dump their assets. According to prominent cryptocurrency analyst Ali Martinez, these unexpected sell-offs by long-term coin holders often coincide with a market top.
The chart shared by Martinez on X (formerly Twitter) shows the changes in Net long term Bitcoin holder position. The green areas show that long-term Bitcoin holders are accumulating Bitcoin and increasing their net positions. On the other hand, red areas show that these holders are selling their holdings and reducing their net positions.
Martinez noted that long-term holders tend to spread out their holdings as Bitcoin approaches market highs. This observation is supported by their behavior during Bitcoin’s rise in 2021.
Between 2017 and 2021, the largest red zones (sell-offs) occurred shortly after Bitcoin’s last surge to a new all-time high (ATH). After this rally, Bitcoin saw significant price corrections, indicating a market top and the end of the uptrend.
The last red area in the chart shows that long-term holders of Bitcoin are as well Sell their property again. If historical trends are repeated, the current sell-off may indicate that Bitcoin is approaching a peak; However, a recent upside rally is still possible.
While past trends cannot guarantee future results, they still provide insight into potential market movements. With Bitcoin’s rapid growth and surpassing $100,000, a market top could be on the horizon anytime soon.
BTC reaches new ATH, what’s next?
Recently, Bitcoin Achieve New ATH, breaking previous resistance levels to reach $106,260. The price of the cryptocurrency jumped by more than 4.8% in one day, sparking discussions and excitement in the cryptocurrency community. Although Access to a new ATH, BTC has since corrected to $105,013 as of writing.
Cryptocurrency analyst Captain Faibik on X also did this Express Excitement around the new ATH, providing a more optimistic outlook for the leading cryptocurrency. According to Vibec, the bullish breakout of Bitcoin’s ascending triangle has been officially confirmed on the daily time frame, indicating a potential bullish breakout. Continuation of the upward trend.
The analyst expects Bitcoin to be able to retest support levels but expects the cryptocurrency to begin its next upward rally after that. Accordingly, he established his FIPC Next BTC target Between $113,000 and $115,000 before the end of 2024.
Featured image created with Dall.E, chart from Tradingview.com
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