Bitcoin Warnings Set by Analytics Firm: Potential Hefty Sell-Off En route at These Levels

Rewritten Article

Title: Bitcoin and the Awaited Profit-Taking Moment by Long-Term Holders

Hey there, crypto enthusiasts! Today, we're delving into the analysis provided by Glassnode, a leading crypto analytics firm, and their insights on long-term Bitcoin holders (LTHs) and their upcoming potential profit-taking actions.

Long-Term Holder Spotlight

Glassnode points out that LTHs, who have held their Bitcoin for at least 155 days, might start offloading their BTC around the $100,000 mark due to an unrealized profit margin. This margin typically signals a historical point at which LTHs start selling, potentially causing market corrections.

"Historically, LTHs initiate more aggressive distribution around a 350% unrealized profit margin, which aligns with a BTC price of approximately $99,900. As the market edges near this level, elevated sell-side pressure is likely to emerge, requiring robust demand to absorb it."

Bitcoin Buying Wave from LTHs

On a positive note, Glassnode also reports that LTHs have been actively purchasing Bitcoin since it broke the $90,000 range late last month. This increase in LTH accumulation suggests that Bitcoin might soon reach the $99,000 level.

"Long-Term Holders continue to accumulate, with +254,000 BTC aging beyond 155 days since the recent low - many bought above $95,000. Spending remains low, signaling renewed confidence and a lack of interest in de-risking at current prices."

Breaking Through the Resistance Level

Lastly, the analysts at Glassnode state that if Bitcoin successfully breaks through the $100,000 resistance level, the flagship crypto asset is likely to hit new all-time highs.

"A large cluster of coins was acquired between $95,000-$98,000, meaning some BTC holders may exit at breakeven. This, coupled with increasing LTH profits, creates a key resistance zone. A clean breakout could open the path to price discovery above $100,000."

Currently, Bitcoin is trading at $96,675, showing no significant changes for the day.

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Bitcoin Warnings Set by Analytics Firm: Potential Hefty Sell-Off En route at These Levels

Bitcoin Warnings Set by Analytics Firm: Potential Hefty Sell-Off En route at These Levels