Bitcoin is experiencing potential selling pressure as long-term holders, or "Hodlers," capitalize on recent gains. This could lead to price dips, but analysts are divided on the extent and duration of the downturn. Keep an eye on market trends for insights into Bitcoin's future trajectory.
Bitcoin (BTC) is facing potential selling pressure as seasoned investors, known as "Hodlers," take profits, according to onchain analytics platform CryptoQuant. This trend is evident in a sharp decline in the realized cap of long-term holders (LTHs), those holding BTC for at least 155 days. Their exposure has decreased by $6 billion, indicating potential profit-taking or closing of buying positions.
While long-term holders are reducing risk, short-term holders (STHs), those holding BTC for up to 155 days, are increasing their market activity. Their realized cap has surged by $6 billion, suggesting increased risk appetite and potentially larger buying positions.
This shift in sentiment is further reflected in the close correlation between the realized price of Bitcoin moving between one day and one week ago and the current spot price. This indicates that traders are closely monitoring this level, and multiple price rejections could signal weakening momentum, potentially leading to short-term corrections.
Recent reports also indicate a surge in exchange withdrawals, marking Bitcoin's largest since November 2022, during the last bear market. This could suggest further selling pressure in the coming days.
Disclaimer: This article provides information only and should not be considered investment advice. Every investment and trading decision involves risk, and readers should conduct their own research before making any decisions.
