As Bitcoin faces bearish pressure, the road to The next milestone, on-chain analysis, identified one of the reasons for not reaching that level.
In today's Bitcoin news, here are the recent price trends for BTC: nothing is missing It was especially noticeable when approaching $100,000 mark. Despite reaching a high of $99,800 on November 22, the major cryptocurrency failed to break through the psychological milestone and has since corrected slightly.
Large profits taken by long-term holders
Several on-chain indicators and expert analysis suggest the reasons behind this resistance. recent Explanation This was revealed by on-chain analyst Checkmate. Selection subject The reason Bitcoin is struggling to surpass $100,000 is intense profit-taking by long-term holders (LTH).
In the past 30 days, LTH released $60 billion worth of Bitcoin, marking the most massive distribution of the cycle. this selling pressure Since the market bottomed out after the collapse of FTX, it has accounted for 21% of total LTH circulation.
The analyst emphasized that such profit taking is a natural part of Bitcoin's market design. Adam Back, co-founder and CEO of Blockstream. I answered in agreementnoted that selling activity is dampening the upward momentum and preventing Bitcoin from taking advantage of the current supply tightness.
I don't know what the lettuce hands are thinking at the start of a bull market. But clearly someone is selling, otherwise tight supply would have already pushed it over $100,000.
— Adam Back (@adam3us) November 24, 2024
He expressed surprise at the timing, noting that such moves often occur late in bull markets rather than at the beginning. However, Buck emphasized that this selling pressure is preventing the price from pushing above $100,000.
Bitcoin faces short-term profit taking
Notably, data from CryptoQuant further supports the notion that profit realization is important. plays an important role Bitcoin is at a near-term resistance level.
Previous analysis He pointed to the short-term expense return (SOPR), which measures the return earned by investors who hold Bitcoin for less than 155 days. Previously, the 30-day moving average SOPR value of 1.02 signaled the beginning of profit taking in a bullish trend.
the current, SOPR reached this level because Bitcoin fix From that peak. This pattern is in sync with past market movements where short-term selling pressure led to temporary price declines.
However, the report notes that strong capital inflows could offset this trend, allowing Bitcoin to rise above $100,000 despite profit-taking headwinds.
Bitcoin speculative demand
Although profit-taking remains a headwind, other indicators suggest there is still momentum in Bitcoin's upward trajectory.
according to another report Today in CryptoQuant, speculative demand is increasing due to FOMO, as Investors expect it to exceed $100,000. This increased demand increased the short-term supply of Bitcoin, further fueling the asset's price momentum.
The analysis noted that short-term holders (STH) have not yet reached the peak sales levels observed during Bitcoin’s all-time high of $72,400. this Despite some profit-taking, this suggests that there is still room for further price increases.
At press time, Bitcoin It traded at $97,314, down 0.34% in the past 24 hours. Despite the recent decline, BTC still boasts a recent gain of 6.24%. week, This is a staggering 43.5% increase since November 5th.
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