Bitcoin has recently demonstrated a robust upward trajectory, re-entering a critical resistance zone that proved challenging in late last year. However, a significant shift is now evident: “long-term holders” appear to be exercising unprecedented restraint in realizing their profits. On-chain analytics firm Glassnode highlights a substantial slowdown in profit-taking by these seasoned investors, injecting a renewed sense of optimism and potential for future market movements.
Glassnode defines “long-term holders” as wallets that have maintained their Bitcoin holdings for over five months. Illustrative data reveals a stark contrast: during Bitcoin’s ascent to historic highs well above $100,000 last year, long-term holders were offloading more than 100,000 BTC weekly. Today, this figure has plummeted by over 87%, now standing at a mere 12,800 BTC per week.
In its latest report, Glassnode elaborated on this trend, stating, “This convergence indicates that while some profit-taking persists within the market, its intensity is considerably milder compared to previous waves of collective selling.” This suggests a more mature market where conviction among long-term investors is strengthening.
Despite this encouraging restraint, Bitcoin’s path forward is far from clear. The cryptocurrency is currently navigating a challenging corridor between $93,000 and $110,000, a range Glassnode identifies as a “historical heavy disaster zone.” Since November last year, Bitcoin has repeatedly attempted to stage structural rallies, only to encounter formidable selling pressure upon touching the lower bounds of this zone, effectively erasing any gains.
Glassnode issues a clear warning regarding this critical juncture:
“Each upward push has been met with fresh seller pressure, making it difficult for the price to sustain a structural recovery trend. For a genuine major trend reversal to materialize, the complete digestion of this cohort of long-term holders’ token distribution remains a necessary prerequisite.”
Furthermore, Glassnode reminds investors that the broader market is not without its inherent risks. An escalation of geopolitical tensions, such as those between the United States and Iran, could trigger a global flight to safety. Such an event would likely exert downward pressure on risk assets, including Bitcoin, making a short-term pullback in such a scenario a distinct possibility.
Disclaimer: This article is intended solely to provide market information. All content and views are for reference only, do not constitute investment advice, and do not represent the opinions or positions of BlockBeats. Investors should make their own decisions and trades. Neither the author nor BlockBeats will bear any responsibility for direct or indirect losses incurred by investors’ trading activities.
