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Recent data from the on-chain shows that while Bitcoin (BTC), which is trading near its historic high, does not seem to be being sold by long-term owners (LTHs), it’s still increasing in value. They continue to invest in Bitcoin, the most valuable cryptocurrency on the market, and are confident that the price will rise further in the next few weeks.
Bitcoin holders who have held their bitcoins for a long time are not selling yet
ShayanMarkets contributed a CryptoQuant Quicktake article that stated, “Profit-taking is relatively low among long-term investors, even though BTC continues to trade near its ATH.” In the past, when Bitcoin is approaching its prior high, investors tend to take more profits to secure their gains. This hasn’t been the case during the current cycle.
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Analysts have noted that Bitcoin’s tendency to consolidate near ATH-levels usually results in significant profits realized by participants. Yet, current data reveals that LTH – those who have held BTC for more than 150 days – have not begun large-scale profit-taking.
The LTH spent output profit ratio (SOPR), in particular, is going down even as BTC keeps on steadily surging towards a new ATH of around $109,000. The analyst explained:
The decline in price suggests that the long-term investors haven’t yet taken significant profits. They appear to be buying, indicating confidence and anticipation of new highs.
Short-term holders and retail traders seem to be driving the current BTC phase of consolidation. These investor segments have historically been more responsive to price fluctuations, reacting quickly to upwards and downwards movements.
Analysts also stated that Bitcoin’s bullish trend is expected to continue following the consolidation period. The next time history repeats, it will be even worse upward movement BTC could reach new highs within the next few months.
This outlook is supported by an analysis from BlitzzTrading, a fellow CryptoQuant contributor. BlitzzTrading observed that BTC whales – wallets holding significant Bitcoin holdings – have taken much less profit compared to previous bull runs.
The behavior of whales suggests that they are long-term investors, and align them closer with LTHs as opposed to retail traders or short term speculators. BTC whales tend to be long-term holders, holding onto their BTC positions throughout market cycles.
BTC may follow gold’s historic price action
It is interesting to note that Bitcoin and gold are being compared. Over the last two years gold has made impressive gains. rising from around $1,800 per ounce in mid-2023 to about $3,200 per ounce today – an increase of nearly 75%.
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Crypto analyst Cryptollica stated recently that BTC will likely follow in the footsteps of gold and see similar gains by 2025. The analyst forecasted BTC could reach as much as $155,000 in 2015.
The Bitcoin Bull-Bear Market Cycle is also a similar indicator. pointing The bullish trend for the top cryptocurrency is likely to continue. BTC was trading at $101,852 as of press time. This is down 1.5% from the previous 24 hours.
Charts from Tradingview.com and CryptoQuant.
“This article is not financial advice.”
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Source: www.newsbtc.com
