Bitcoin Long-Term Holders Officially Enter Into Greed Territory, Is This Good Or Bad For Price?
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In a recent development, the cryptanalyzer Ali Martinez It revealed that long-term Bitcoin holders have officially entered the territory of greed. This can benefit the price in the short term, although the long-term consequences could be severe. The greed phase indicates that long-term Bitcoin holders are now very optimistic about BTC’s future path.
Long-term Bitcoin holders are officially entering greed territory
in X PostMartinez stated that Bitcoin holders are long-term, having experienced each stage Market cycleNow let greed take over. In terms of market sentiment, these bearers have moved from surrender to hope and optimism, then faith and now into the greed phase.
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This excessive optimism usually leads these investors to recklessly accumulate more BTC without considering rational analyses. short term , This stage is greed It is bullish for Bitcoin price because this market sentiment could spark more buying pressure and drive the leading cryptocurrency higher.
It seems that this buying pressure for Bitcoin is already evident because on-chain analytics platform Santiment revealed that the number of wallets holding 100 to 1,000 BTC has broken an all-time high (ATH), rising to 15,777 wallets. The platform also mentioned this Bitcoin whales It peaked this week with the US opening and a new BTC ATH as transactions exceeding $100,00 rose to a six-week high.
This greed phase is good for BTC price, as it could continue to send the flagship cryptocurrency to new highs. However, in the long term, this excessive optimism could put BTC in a tailspin Viewed areaeventually sparking a massive wave of selling that would send the price of Bitcoin skyrocketing.
This greedy phase among long-term Bitcoin holders appears to be fueling optimism around Donald Trump’s pro-profit and… BTC Strategic Reserve especially. This still represents a risk to Bitcoin’s price since the flagship cryptocurrency could trade well above its actual value if a BTC reserve is not eventually created.
What needs to happen for BTC to stay optimistic
In another X post, Ali Martinez He warned that Bitcoin price needs to stay above $97,530 to remain optimistic. According to him, this price level is the key support level to monitor for BTC, where it is crucial to maintain the current upward momentum. Bitcoin is currently consolidating this range after achieving a new ATH of $109,000 earlier this week.
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Meanwhile, a cryptoanalyst CryptoRover He highlighted the $102,000 support area as the most important for BTC price at the moment. Its accompanying chart showed that the major crypto could fall below $98,000 if it falls below this support level.
At the time of writing, the price of Bitcoin is trading at around $104,900, up more than 2% in the past 24 hours, according to data from CoinMarketCap.
Featured Image from Unsplash, Chart from TradingView.com
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