as Bitcoin price continues its upward trendon-chain data shows that long-term Bitcoin holders are starting to sell off their assets. Historically, similar market behavior has coincided with market highs in the 2021 bull cycle, raising the question of whether the pioneering cryptocurrency is finally getting closer to its goal. market peak.
Long-term Bitcoin holders are selling and the market is ahead of us?
Bitcoin price is in a powerful upward trend Donald Trump’s victory in the US presidential elections. Before rising to its previous ATH level of $100,000, BTC saw a rally keen escalate in accumulationwith most whales preferring to hold rather than sell their holdings.
However, data in the chain revealed that long-term Bitcoin holders have started operating unloading your assets. According to prominent cryptocurrency analyst Ali Martinez, this unexpected sell-off by long-term holders often coincides with a market high.
A chart shared by Martinez on X (formerly Twitter) illustrates the changes in Net position of a long-term Bitcoin holder. The green areas show that long-term holders are accumulating BTC and increasing their net positions. On the other hand, the red areas show that these holders are selling their shares and reducing their net positions.
Martinez noted that long-term holders tend to distribute their holdings as BTC approaches a market high. This observation is confirmed by their behavior during Bitcoin bull run in 2021.
From 2017 to 2021, the largest red (sell-off) areas occurred shortly after Bitcoin finally surged to a up-to-date all-time high (ATH). Following this escalate, BTC experienced significant price corrections, signaling the market peak and the end of the bull market.
The last red area on the chart shows that these are long-term Bitcoin holders they sold their shares again. If historical trends repeat, the current sell-off could indicate that BTC is nearing a peak; however, there may still be a final uptrend.
While past trends cannot guarantee future performance, they still provide insight into potential market movements. As Bitcoin experiences rapid growth and crosses $100,000, a market top may soon be in sight.
BTC Hits Modern ATH, What’s Next?
Recently Bitcoin achieved up-to-date ATH, which broke above previous resistance levels to reach $106,260. The price of the cryptocurrency rose by over 4.8% in one day, sparking discussions and excitement in the cryptocurrency community. Despite achieving a up-to-date ATH, BTC has since corrected to $105,013 as of this writing.
Cryptocurrency analyst Captain Faibik on X also did this expressed excitement for the up-to-date ATH, providing an even more bullish outlook for the pioneering cryptocurrency. According to Faibik, the Bitcoin Ascending Triangle breakout has been officially confirmed on the daily time frame, indicating the potential for continuation of the upward trend.
The analyst predicts that Bitcoin may test support levels again, but expects the cryptocurrency to initiate another bullish rally thereafter. Therefore, Faibik placed his bet BTC’s next target $113,000 to $115,000 by the end of 2024.
Featured image created with Dall.E, chart from Tradingview.com
