Glassnode warns Bitcoin (BTC) may face strong selling pressure as it nears $100,000, based on long-term holders’ potential selling behaviour. Historically, when unrealized profits reach around 350%, significant selling can occur. The firm highlights that current buying by holders indicates confidence, but a breach above $100,000 could lead to new highs. As of now, Bitcoin trades at $96,675.
Crypto analytics company Glassnode has issued a cautionary note regarding Bitcoin (BTC), suggesting that the cryptocurrency is nearing a significant resistance point. This comes as they observed long-term holders (LTHs)—who have kept their Bitcoin coins inactive for a minimum of 155 days—may start to sell around the $100,000 threshold. Their analysis indicates that such actions could trigger a market correction due to increased selling pressure.
Glassnode pointed out on the social media platform X that historically, LTHs tend to sell more actively when Bitcoin’s unrealized profit margin hits approximately 350%. This metric suggests that if Bitcoin approaches a price of around $99,900, the selling could ramp up significantly. Therefore, strong demand will be necessary to absorb the potential influx of BTC hitting the market.
Moreover, the firm highlighted that LTHs have been accumulating Bitcoin since it surpassed the $90,000 mark late last month. As it stands, Bitcoin’s price sits at $96,675. They noted that over 254,000 BTC is now held by those who have kept their coins for more than 155 days, indicating a lack of urgency to sell at current prices and showcasing renewed confidence in Bitcoin’s value.
The analytics firm conveyed that if Bitcoin successfully breaches the $100,000 mark, it is likely to reach new all-time highs. Glassnode noted a significant cluster of Bitcoin was acquired when the price was between $95,000 and $98,000. This scenario suggests that some investors may opt to cash out at breakeven, creating a crucial resistance area. In the event of a successful breakout, it could lead to price discovery well above the $100,000 mark.
Bitcoin’s current trading status, as of this writing, remains relatively stagnant at $96,675 for the day. Investors are urged to keep an eye on market movements as the potential for volatility looms closer to the $100,000 level.
It’s essential for people to realise that this isn’t investment advice. The opinions expressed by The Daily Hodl stress the importance of thorough research before making high-risk investments in Bitcoin or any form of cryptocurrency. All financial moves come with risks, and individuals must acknowledge that any incurred losses are their own responsibility. The Daily Hodl also does not endorse specific cryptocurrencies or digital assets and has a note on affiliate marketing.
The latest on Bitcoin suggests tensions are rising as we approach pivotal price points, and traders should exercise caution and stay informed.
