Bitcoin’s rising price has led to speculation about reaching $100,000, but long-term holders are influencing market dynamics. Accumulation behaviour among these investors could signal confidence, yet, they may begin selling around the $99,900 price point. Glassnode warns of potential selling pressure, notably from the established supply barrier between $95,000 and $98,000, which could hinder growth. Current Bitcoin price stands at approximately $96,500, indicating a slight decline.
Bitcoin’s potential to reach a six-figure valuation has become a hot topic in the cryptocurrency world, with many eyes on long-term holders (LTHs) and the impacts their behaviour might have on price dynamics. Insights from blockchain analytics firm Glassnode reveal that LTHs, defined as individuals who haven’t moved their Bitcoin for over 155 days, have recently entered an accumulation phase. This means they are holding onto their assets tightly, with more than 254,000 BTC now aged beyond that threshold since Bitcoin’s last lows.
Interestingly, Glassnode highlights that many of these LTHs bought their coins at prices exceeding $95,000. This accumulation phase shows confidence among these holders, as they seem reluctant to spend even in a somewhat bearish market over the last month. Their minimal selling activity suggests they haven’t lost faith and aren’t looking to reduce exposure just yet.
However, as prices near the $100,000 mark, caution is warranted, according to Glassnode’s analysis. Historically, LTHs tend to start selling when they hit unrealised profits of about 350%, which currently would be around $99,900 for Bitcoin. If BTC edges closer to this price, it could signal an uptick in selling activity, leading to increased downward pressure on prices as those looking to take profits might sell.
Moreover, Glassnode points out a notable concentration of purchases in the $95,000 to $98,000 range. This price structure could create a significant supply barrier. If holders who bought in this range decide to sell at or near breakeven, this could add to the selling pressure and impact Bitcoin’s price adversely.
In conclusion, while selling pressure from these long-term holders and the established supply zone between $95,000 and $98,000 poses challenges, a successful breakout above the $100,000 level could be monumental. It might also pave the way for Bitcoin’s price discovery as supply decreases above the mark, making it potentially easier for prices to rise.
Currently, Bitcoin is trading at about $96,500, which reflects a slight decline of 0.4% over the past day. This fluctuation comes amid broader market analysis and varying speculation on the coin’s near-term trajectory, further complicating the outlook for traders and investors.
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