HODL

Waves

Bitcoin

Change

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Long-term Bitcoin holders have been selling off their assets, causing a struggle for Bitcoin to break its psychological resistance.</li> 
 <li>New market participants are absorbing the selling pressure, stabilizing Bitcoin’s price for now.</li> 
</ul> 
<p> Long-term holders of <a href="https://coineagle.com/price/bitcoin/">Bitcoin (BTC)</a> have been cashing in on their assets, marking the largest sell-off in the past 30 days. This activity has sparked questions about the motivations behind such a large sell-off and whether it signals profit-taking or a potential market correction.</p> 
<h2 id="significant-sell-off-by-long-term-holders">Significant Sell-Off by Long-Term Holders</h2> 
<p>This sell-off coincides with Bitcoin’s recent surge to $93,000. Analysis of the Long Term Holders Net position Change chart on CryptoQuant indicates that over 728,000 BTC has been sold in the past 30 days. This is the largest sell-off since April, which at the time triggered a short-term price correction. With Bitcoin still maintaining a price above $90,000, the market’s resilience is being tested.</p> 
<p>The Bitcoin Fear &amp; Greed Index, a key indicator, currently shows a reading of around 75, reflecting “extreme greed” in the market. Such sentiment often precedes corrections, as overconfidence among investors can lead to unsustainable price action. This, combined with the sell-off from long-term holders, suggests caution may be warranted in the short term.</p> 
<h2 id="shift-in-bitcoin-ownership">Shift in Bitcoin Ownership</h2> 
<p>Data from Glassnode’s Realized Cap HODL Waves shows a significant shift in Bitcoin ownership. Younger coins, those held for less than six months, are making up a larger share of the market. This suggests that new entrants or traders are absorbing the selling pressure from long-term holders, stabilizing Bitcoin’s price for now. However, it remains uncertain whether these new market participants will maintain their conviction if volatility increases.</p> 
<p>While the recent sell-off by long-term Bitcoin holders is significant, it doesn’t necessarily indicate a bearish trend. The market has shown resilience, with $90,000 acting as critical support. However, the combination of extreme greed in the market and heavy profit-taking raises the risk of increased volatility.</p> 
<p>The RSI (Relative Strength Index) for Bitcoin is currently at 61.44, indicating that the asset is nearing overbought levels. Historically, these metrics tend to align with profit-taking behavior, especially when prices breach significant psychological thresholds. As Bitcoin edges closer to $100,000, a key psychological resistance level, investors should closely monitor the behavior of both long-term holders and newer participants. Whether this is a consolidation phase or a prelude to a correction remains to be seen.</p>

Understanding the Message Behind the Sale of 728,000 Bitcoins by Long-Term Holders

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CoinEagle.com

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