Bitcoin Long-Term Holders Complete Largest Market Sell-Off Since 2021, Is The Top Here?

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As a seasoned researcher with over two decades of experience in the financial markets, I find myself intrigued by the latest developments in the Bitcoin market. The recent surge in its price and the subsequent sell-off by long-term holders have sparked my curiosity.

With Bitcoin’s price steadily climbing, data from the blockchain shows that long-term investors are starting to offload their Bitcoin. In the past, such market trends have often been associated with market peaks during the 2021 bull run. This prompts the speculation that perhaps the original cryptocurrency has reached or is nearing its peak in the current market.

Bitcoin Long-Term Holders Sell, Market Top Ahead?

The cost of Bitcoin has been steadily increasing since Donald Trump’s win in the U.S. Presidential elections, following a robust upward trend. In the lead-up to hitting its prior all-time high of $100,000, Bitcoin experienced a significant increase in hoarding, as most large investors chose to keep their Bitcoins instead of selling them.

In contrast, analysis of on-chain data suggests that long-term Bitcoin owners are unloading their coins. Notably, as per well-known crypto analyst Ali Martinez, such sudden selling by long-term investors frequently coincides with market peaks.

Martinez’s shared chart on X (previously Twitter) highlights the fluctuations in Bitcoin’s long-term holder stockpile. The green sections indicate that long-term investors are amassing more BTC, thereby expanding their total holdings. Conversely, the red regions signify these investors are disposing of their coins and diminishing their overall holdings.

It was pointed out by Martinez that those who have held Bitcoin for a longer period often start to sell their assets when Bitcoin gets close to reaching a market peak. This conclusion is backed up by how they acted during the Bitcoin price surge in 2021.

From 2017 to 2021, the largest declines in Bitcoin (BTC) occurred immediately following its last peak at a record-breaking high. After reaching this new all-time high, BTC underwent substantial price drops, indicating market saturation and the conclusion of the bullish trend.

Based on the latest data from the chart, it appears long-term Bitcoin holders are unloading their assets once more. Should past patterns recur, this selling spree might hint at Bitcoin approaching its maximum point; yet, there’s still a possibility of a final price surge before a decline.

Although historical patterns don’t always predict future events, they offer valuable clues about possible market shifts. Given the swift increase in the value of Bitcoin exceeding $100,000, it might not be long before we reach a peak in the market.

BTC Hits New ATH, What’s Next?

Just now, Bitcoin broke its all-time high (ATH), soaring beyond previous barriers to hit $106,260. In a single day, the cryptocurrency’s value rose by approximately 4.8%, generating buzz and enthusiasm within the crypto world. However, since then, Bitcoin has slightly corrected and is currently trading at $105,013.

Captain Faibik, a crypto analyst, is equally enthusiastic about the new all-time high (ATH) of X and presents an even more optimistic perspective for Bitcoin. As per Faibik’s analysis, the upward breakout within the Bitcoin Ascending Triangle on the daily timeframe has now been verified, suggesting potential continuation of the uptrend.

According to the analyst, Bitcoin might dip back down to test some support levels, but he believes a new bullish rally will follow soon after. As a result, Faibik has established his future BTC price target in the range of $113,000 to $115,000 by the close of 2024.

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2024-12-16 12:11