Over the past few days, Bitcoin‘s price has been hovering between the $84,000 and $85,500 marks, signaling a potential period of consolidation prior to its next move. During the persistent price fluctuation, many investors, especially short-term BTC holders, have been spotted offloading their holdings.
Mounting Selling Pressure By Bitcoin Short-Term Holders
In a notable change in on-chain behaviour, Bitcoin investors, particularly short-term holders, are increasing their selling pressure. João Wedson, the founder and Chief Executive Officer (CEO) of Alphractal, reported the negative sentiment among short-term holders, indicating a wave of market hesitancy and profit-taking.
According to the founder, these investors have been heavily distributing their BTC holdings in the past 7, 30, and 90 days, suggesting weakening conviction in the asset’s near-term trajectory. This heightened distribution by short-term holders comes in light of BTC battling to recover key resistance levels such as the $86,000 threshold.
On-chain data shows that the Bitcoin Accumulation vs Distribution of Short-Term Holders metric has shifted into negative territory. When these measurements are significantly negative, it usually indicates that the price has formed a bottom and that the selling has occurred some time ago.
Considering the development, Joao Wedson is confident that each fresh decline in Bitcoin’s price should be viewed as a chance to accumulate since the short-term holders have already been distributed. This is because BTC’s price will probably have increased by at least 20% by the time these indicators turn positive, and the sense of having lost the opportunity to accumulate will set in.
Should this wave of sell-offs extend, it is likely to put more pressure on BTC’s upward attempts. However, the on-chain expert has urged investors to remain steadfast and consider the next dip, whether to $80,000, $70,00, or $60,000 as an opportunity for the next price rally.
Bitcoin Long-Term Holder Still Realizing Massive Profits
While short-term BTC holders are heavily selling their holdings, long-term holders continue to hold as they remain in profit. Darkfost, a market analyst and author, stated that the long-term holders are still realizing over 85% in profit as the Spent Output Profit Ratio (SOPR) metric fluctuates around the 1.85 level.
The LTH SOPR metric measures the ratio between the price at which coins are spent and their acquisition price. Prior bear markets have seen the long-term holders SOPR indicator fall as low as 0.4, indicating substantial capitulation, and the ratio is still far from that point.
Darkfost highlighted that the realized price for long-term holders is positioned at approximately $27,000, whereas the spent price is around $40,000. While crypto participants may be considering a bear market, Darkfost noted that every bear market in history has caused prices to drop below the LTHs’ realized price, triggering the most suffering for these investors.
