Bitcoin’s price nearing $99,900 may trigger selling from long-term holders, according to Glassnode. Historical trends suggest these holders often cash out at 350% gains. Additionally, buyers from earlier this year, around $95K-$98K, could also exit to secure profits, leading to potential selling pressure. A breakthrough above this could position Bitcoin for new highs.
Bitcoin bulls are facing potential hurdles as the price edges towards $99,900, according to recent data. On-chain analysis from Glassnode indicates that long-term BTC holders, who typically sell after achieving significant profits, are likely to take action around this price point. Historically, this group often cashes out when they see around a 350% gain.
The data suggests that this selling pressure could come from long-term holders identified as those with assets in their wallets for at least 155 days. As Bitcoin approaches $99,900, the chances for increased sell-side pressure grow—this hinges on the demand available to absorb these potential sales. Glassnode notes that historical patterns show heightened distribution behaviour around these profit margins.
Moreover, an additional wave of selling might originate from those who bought BTC earlier this year, particularly between $95,000 and $98,000. They endured a significant dip to $75,000 just last month and could now be tempted to exit at break-even or a minimal profit. Their trading behaviour typically leans towards taking gains while holding onto losing positions.
The market could see a clustered scenario of selling at $95k to $98k, creating a resistance zone. In simple terms, many holders might consider their next move should Bitcoin approach these levels. Glassnode’s analysis points out that overcoming this resistance could pave the way for Bitcoin to break above $100,000 and potentially set new records.
As the BTC price nears the significant $100,000 landmark, traders have begun speculating on its trajectory. The buzz is that while a price rally sounds promising, the journey upward may not be as seamless as some imagine. The dynamics at play suggest that sellers might influence momentum considerably around the $99,900 mark, reminding bulls to stay alert.
One piece of advice to Bitcoin enthusiasts: keep a close eye on market movements as this pivotal price point approaches. Navigating these selling pressures will require robust demand; otherwise, the bulls might find their bullish run tested as selling intensifies.
Omkar Godbole, a Co-Managing Editor at CoinDesk with an academic background in finance, has outlined this scenario based on his research in cryptocurrency markets. Currently based in Mumbai, he holds minor investments in various digital currencies, including Bitcoin and Ethereum.
