As the Bitcoin price maintains its upward trajectory, on-chain analytics indicate that long-term Bitcoin holders are starting to offload their assets. Historically, such market trends have coincided with peaks during the 2021 bull market, prompting speculation about whether the leading cryptocurrency is approaching its market zenith.
Long-Term Bitcoin Holders Liquidate, Market Peak Imminent?
The price of Bitcoin has been on a robust bullish trajectory following Donald Trump’s election in the US Presidential races. As it surged toward its former $100,000 ATH, BTC experienced a significant increase in accumulation, with a majority of whales choosing to hold rather than liquidate their assets.
However, on-chain insights have disclosed that long-term holders of Bitcoin have commenced liquidating their assets. Notable crypto analyst Ali Martinez asserts that this unforeseen sell-off by long-term holders frequently aligns with a market top.
The graph shared by Martinez on X (formerly Twitter) depicts the fluctuations in the net positions of long-term Bitcoin holders. The green segments illustrate instances where long-term holders are accumulating BTC and boosting their net positions. Conversely, the red segments reveal periods when these holders are liquidating their assets, reducing their net positions.
Martinez emphasized that long-term holders typically start to distribute their assets as BTC nears a market peak. This pattern aligns with their actions observed during the 2021 Bitcoin bull market.
From 2017 to 2021, the most substantial red (sell-off) segments were recorded shortly after Bitcoin’s final ascent to a new all-time high (ATH). Following this surge, BTC went through notable price corrections, indicating the market top and the conclusion of the bull run.
The latest red segment in the graph suggests that long-term Bitcoin holders are liquidating their holdings once again. If past trends are any indication, the current sell-off could suggest that BTC is reaching a peak; however, an additional upward rally remains plausible.
While historical patterns cannot definitively predict future events, they offer valuable insights into possible market behaviors. With Bitcoin demonstrating swift growth and surpassing $100,000, a market peak could be imminent.
BTC Reaches New ATH, What Lies Ahead?
Recently, BTC established a new ATH, soaring past previous resistance points to touch $106,260. The price of the cryptocurrency had surged over 4.8% within a day, sparking excitement and dialogue within the crypto community. Despite hitting a new ATH, BTC has since retraced to $105,013 as of this writing.
Crypto analyst Captain Faibik on X has also shared his enthusiasm about the new ATH, presenting an even more optimistic perspective for the leading cryptocurrency. According to Faibik, the Bitcoin Ascending Triangle upside breakout has been formally confirmed on the daily chart, suggesting a potential for an upward continuation.
The analyst forecasts that Bitcoin could retest support levels but anticipates that the cryptocurrency will embark on its next bullish surge thereafter. Consequently, Faibik has established his next BTC target in the range of $113,000 to $115,000 before the conclusion of 2024.
Featured image generated with Dall.E, chart from Tradingview.com
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