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Long-term Bitcoin Holders’ Shift in Strategy
Long-term holders of bitcoin (BTC) have seemingly ended their selling spree, marking a change in strategy that has helped convert the psychological $100,000 resistance price into a support level for the first time.
A Shift in Sentiment
With one short-lived exception, the largest cryptocurrency has held above $100,000 since January 17. The past few days have been extremely volatile due to President Donald Trump’s inauguration, which saw a spike in volatility.
Long-term Holders’ Selling Pressure
Long-term holders, or investors who have held bitcoin for over 155 days, have been among the biggest contributors to selling pressure on the market, according to CoinDesk research in December. They are deemed “smart money” because they tend to buy when bitcoin prices are depressed and sell into strength, a pattern that has been observed over the past four months.
In September, this cohort held 14.2 million BTC. It now holds 13.1 million BTC. While the investors held back around the start of the year, sales have picked up again in recent days as the price rose, though at a reduced pace.
The Trend to Watch
The trend to watch out for is when they stop selling. This tends to mark a top in the cycle, which has occurred in 2013, 2017, 2021, and 2024.
Conclusion
The shift in strategy by long-term holders of bitcoin has helped convert the psychological $100,000 resistance price into a support level for the first time. The trend to watch out for is when they stop selling, which tends to mark a top in the cycle.
FAQs
Q: What is the significance of the $100,000 resistance price in the context of bitcoin’s price action?
A: The $100,000 resistance price is a psychological level that has been a major hurdle for bitcoin’s price to break through.
Q: What is the role of long-term holders in the market?
A: Long-term holders, or investors who have held bitcoin for over 155 days, are considered “smart money” and tend to buy when prices are depressed and sell into strength.
Q: What is the significance of the trend to watch out for when long-term holders stop selling?
A: The trend to watch out for is when long-term holders stop selling, which tends to mark a top in the cycle.
