Bitcoin Sees LTH Distribution As Price Climbs – On-Chain Indicator Confirms Bullish Environment

Bitcoin is entering what many consider to be the most crucial week of this market cycle, not because of the impending US election or the Federal Reserve’s upcoming interest rate decision, but because it is on the verge of breaking its all-time highs. If BTC surpasses this milestone, it will enter a “price discovery” mode, which could lead to a massive rally across the entire cryptocurrency market.

This bullish forecast is supported by data from CryptoQuant analyst Maartunn, who highlighted that long-term Bitcoin holders sold an impressive amount of 177,617 BTC in the past seven days.

This bout of selling from seasoned stockholders often signals a bullish phase, indicating that they are cashing in profits before a potential market turn. This situation is consistent with BTC’s momentum near its peak, suggesting that many see current prices as ideal for gains, which could make room for new buyers and fresh demand.

With BTC approaching all-time highs, any bullish breakout could change the entire market sentiment and initiate a major bullish rally, making this week a critical period for BTC and the broader cryptocurrency landscape.

Bitcoin is entering a bullish phase

Bitcoin is entering the final phase of this cycle as it approaches all-time highs and approaches uncharted territory. This pivotal moment has attracted significant attention from analysts and investors alike.

CryptoQuant analyst Maartunn recently shared a balance change chart based on the time heldIt revealed that Bitcoin Long Term (LTH) holders sold 177,617 Bitcoin in the past seven days. This chart shows the movement of older Bitcoin, typically owned by investors with a long-term perspective.

Long-term holders are usually less affected by market fluctuations than short-term speculators. Their activity is often a contrarian indicator; They tend to buy and increase their holdings during low prices and sell when prices rise. As the price of BTC has risen over the past few days, there has been a noticeable rise in LTH distribution, indicating a potential shift in sentiment among these sophisticated investors.

This behavior is reminiscent of patterns observed during previous rallies in 2018, 2021 and 2024, where LTH activity was crucial to price movements. The current rise in BTC price and increased selling of LTHs suggest that these investors may be taking profits ahead of a potential breakout, reflecting their confidence in the market’s trajectory.

With Bitcoin approaching all-time highs, the dynamics between long-term holders and the broader market will be crucial in determining whether it can maintain momentum and enter a new phase of price discovery. This week may set the tone for the future of Bitcoin and the entire cryptocurrency market.

BTC is approaching ATH

After falling below this crucial level yesterday, Bitcoin is trading above the $68,000 level. As it hovers just below $69,000, market participants are closely monitoring developments surrounding the US elections. For the bulls to regain momentum and push towards an upward trajectory, Bitcoin must cross the $70,000 level in the coming days and challenge its all-time highs.

However, the current volatile environment and uncertainty surrounding economic factors could lead to price fluctuations that push Bitcoin lower. If such a scenario occurs, the key support level would be $66,500, which is a critical demand zone supporting the bullish price structure. Maintaining support above this level is essential to maintain bullish momentum and avoid a deeper correction.

As the market awaits the election results, traders remain cautious, with price action likely to be influenced by the political landscape and broader economic sentiment. The coming days will be pivotal for Bitcoin as it seeks to create a solid foundation for further gains and perhaps enter a new phase of price discovery.

Featured image by Dall-E, chart from TradingView