Long

Bitcoin

when

James

Near-term Bitcoin price dips probably won’t be as deep as last week’s 10% plunge, as selling pressure has significantly eased since its first spike above six figures, according to one crypto analysis. Others remain skeptical.
“With such a decline in realized profit and sell-side pressure, we can expect future declines to be less abrupt than the one experienced last week,” Bitfinex analysts said in a Dec. 9 markets <a data-ct-non-breakable="null" href="https://blog.bitfinex.com/wp-content/uploads/2024/12/Bitfinex-Alpha-134.pdf" rel="null" target="null" text="null" title="null">report</a>.
<h2 id="signals-of-easing-sell-side-pressure-emerges">Signals of “easing sell-side pressure” emerges</h2>
On Dec. 6, over 24 hours, Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tags/bitcoin" rel="null" target="null" text="null" title="null">BTC</a>) dropped almost 10% from $103,493 to under $93,000, just one day after surpassing the $100,000 price level for the first time on Dec. 5, according to CoinMarketCap <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/bitcoin/" rel="null" target="null" text="null" title="null">data</a>.
<figure>
 <img alt="Cryptocurrencies, Markets" src="https://s3.cointelegraph.com/uploads/2024-12/0193ae93-361c-784d-ae4e-c457a3f8f577" title="">
 <figcaption style="text-align: center;">
 Bitcoin is up 0.34% over the past seven days. Source: <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/bitcoin/" rel="nofollow noopener" target="_blank" text="null" title="https://coinmarketcap.com/currencies/bitcoin/">CoinMarketCap</a>
 </figcaption>
</figure>
Cointelegraph reported that the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-plummets-btc-price-longs-liquidated" rel="null" target="null" text="null" title="null">sudden price decline from $98,338 to $92,957</a> triggered over $303.5 million in liquidations of long positions within the hour, pushing total liquidations over the 24 hours to $404 million.
Still, Bitfinex analysts said signs of “market stabilization are emerging.”
<blockquote>
 “Realized Profit RP, which tracks the USD gains from moved coins, peaked at $10.5 billion daily during Bitcoin's surge towards $100,000. However, it has since fallen to around $2.5 billion per day, reflecting a 76 percent drop.”
</blockquote>
They explained this suggests that profit-taking has “significantly cooled” and that further sell-offs may be “less dramatic in nature.”
At the time of publication, Bitcoin was trading at $97,483, <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/bitcoin/" rel="nofollow noopener" target="_blank" text="null" title="https://coinmarketcap.com/currencies/bitcoin/">according</a> to CoinMarketCap. 
The Bitfinex analysts also said that Bitcoin’s funding rates are “stabilizing” and that the market is transitioning to a “more balanced phase, where volatility is likely to be more contained and price movements less erratic in the medium term.”
<figure>
 <img alt="Cryptocurrencies, Markets" src="https://s3.cointelegraph.com/uploads/2024-12/0193ae95-3434-7f30-888e-2c1f7b375352" title="">
 <figcaption style="text-align: center;">
 Funding APR Heatmap. Source: <a data-ct-non-breakable="null" href="https://www.coinglass.com/FundingRate" rel="nofollow noopener" target="_blank" text="null" title="https://www.coinglass.com/FundingRate">CoinGlass</a>
 </figcaption>
</figure>
The current funding rate for Bitcoin on the world’s largest crypto exchange, Binance, is 0.01%, according to CoinGlass <a data-ct-non-breakable="null" href="https://www.coinglass.com/FundingRate" rel="null" target="null" text="null" title="null">data</a>.
Still, Glassnode lead analyst James Check remains uncertain about the market stabilizing.
“Sell-side pressure by existing holders is tremendous right now, and in my view, completely overwhelms the demand from both ETFs and MSTR,” Check said in a Dec. 9 X <a data-ct-non-breakable="null" href="https://x.com/_Checkmatey_/status/1866306046823924089" rel="null" target="null" text="null" title="null">post</a>.
“There are lots of heated signals,” Check added.
<h2 id="long-term-holders-have-been-in-significant-profits">Long-term holders have been in significant profits</h2>
The Long Term Holder realized price — the average price paid by long-term Bitcoin holders — is $24,481, representing about a 400% average gain for long-term holders.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-spinning-top-candle-targets-115-k-after-recent-15-btc-flash-crash" rel="null" target="null" text="null" title="null">Bitcoin ‘spinning top’ candle targets $115K after recent 15% BTC flash crash</a>
Cointelegraph recently reported that Bitcoin’s climb toward $100,000 <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-potential-top-large-monthly-sales-long-term-holders" rel="null" target="null" text="null" title="null">has seen significant offloads</a> from long-term holders. Some analysts say this may signal a potential top that could catch traders offside when buy-side demand starts to wane.
“It’s a game of musical chairs: enjoy the ride, but be prepared when the music stops,” CryptoQuant contributor Maartuun said on Dec. 8.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/5-incredible-uses-for-based-agents-and-nears-ai-assistant/" rel="null" target="null" text="null" title="null">5 incredible use cases for Based Agents and Near’s AI Assistant</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin tumbles will be ‘less abrupt’ after realized profit drops 76%

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