The post Bitcoin Faces Uncertainty as Long-Term Holders Offload Amid Market Signals of a Possible Top appeared on BitcoinEthereumNews.com.

The recent surge in Bitcoin’s price has sparked concerns among analysts about a potential market correction, emphasizing the need for traders to remain vigilant. Bitcoin’s momentum, edging closer to the $100,000 mark, is accompanied by significant profit-taking from long-term holders, which could indicate a shift in market sentiment. “As the game of musical chairs unfolds, traders must understand the dynamics at play,” cautioned well-respected analyst Maartuun from CryptoQuant. As Bitcoin approaches $100K, long-term holders are offloading, raising concerns about potential price corrections amidst retail demand highs. The Dynamics of Long-term Holders Offloading Bitcoin Since November 8, data reveals that long-term holders — those who have retained their Bitcoin (BTC) for a minimum of 155 days — have sold off approximately 827,783 BTC, translating to around $82.59 billion at current valuations. This trend suggests a possible nearing of market peaks, as sell-offs from these holders could signal incoming bearish pressure. Notably, among these sales, approximately 149,800 BTC correlates with purchases from MicroStrategy, led by Mike Saylor, alongside inflows of 84,193 BTC into spot Bitcoin exchange-traded funds (ETFs) noted during the same timeframe. However, Maartuun stresses that these figures represent only one-third of the total offloaded by long-term holders, indicating a broader market sell-off. Further emphasizing this context, Maartuun remarked that, despite heavy selling from seasoned investors, Bitcoin’s price robustness reflects strong retail demand. According to his analysis, retail participation in Bitcoin trading is on the rise, having reached its yearly highs as indicated by the retail demand chart from CryptoQuant. Retail Demand and Bitcoin Futures Trading In addition to direct purchases, retail investors are actively engaging in Bitcoin futures trading. Current statistics from CoinGlass illustrate that Bitcoin Open Interest (OI), which measures the total number of unsettled Bitcoin derivative contracts such as options and futures, sits at a significant $61.18 billion.…

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Filed under: News - @ December 9, 2024 5:18 am