Bitcoin, often influenced by long-term holders’ (LTH) decisions, has witnessed significant selling activity among this investor group over the past week.
While the reason behind the long-term holders offloading Bitcoin is not certain, the move appears to have impacted BTC, resulting in the recent correction in its price dropping below the $70,000 price mark.
Bitcoin’s Long-Term Holders Begins To Cash Out
According to an analysis shared by Crypto analyst Maartunn, long-term holders sold approximately 177,617 BTC within the last seven days.
Based on data from IntoTheBlock, this trend shows a pattern in which Bitcoin’s long-term investors tend to reduce their holdings during price increases, a behavior often perceived as a “contrarian indicator” in the crypto market, Maartunn reveals.
Typically, these LTHs, who hold Bitcoin with a longer investment horizon, tend to buy during downturns and sell during price upticks.
Maartunn pointed out that similar patterns were visible during previous bull markets in 2018, 2021, and 2024, indicating a possible strategic response to Bitcoin’s recent price movement.
Bitcoin Long-Term Holders (🔵) Sold 177,617 BTC in the Last 7 Days
This chart displays Balance Changes by Time Held, offering insight into the movement of older Bitcoin. These older coins, referred to as Long-Term Holders (LTH), typically belong to investors with a long-term… pic.twitter.com/wiCVdIbf9e
— Maartunn (@JA_Maartun) November 4, 2024
With Bitcoin’s price recovering and returning to levels above $68,000, the distribution of holdings among long-term investors suggests cautious positioning, even as many anticipate a potential upward continuation.
Technical Analysis Indicates Key Levels to Watch for Bitcoin
As Bitcoin continues to trade around crucial levels, another prominent analyst, known as CryptoBullet, has shared his outlook on the asset’s recent performance and potential upcoming movements.
Despite Bitcoin’s brief dip below the $70,000 mark, CryptoBullet expressed limited concern, noting that the asset has maintained three weekly closes above a major resistance line, which indicates resilience.
Third weekly close above the Resistance line 👌
Do I care about that wick? Not really. We didn’t sweep the March high so it’s not that dangerous imo.
New ATH is coming anyway 🚀 https://t.co/mVsvJOZMpI pic.twitter.com/sjm4ek9Jsg
— CryptoBullet (@CryptoBullet1) November 4, 2024
According to his analysis, although Bitcoin has not swept past the previous high set in March, the current consolidation phase is not necessarily a cause for concern.
CryptoBullet further highlighted a few significant price zones, particularly between $65,000 and $66,000, which he considers pivotal for determining Bitcoin’s near-term trend. Should Bitcoin fail to hold at these levels, a drop to the $60,000 to $61,000 range could be expected.
However, he remains optimistic about a long-term bullish outcome, suggesting that once these levels are tested, Bitcoin could resume its upward trajectory and eventually reach new all-time highs.
Featured image created with DALL-E, Chart from TradingView