Bitcoin Holders Cut Profit-Taking by 60%, Eyeing $120K Surge #CriptoNews

Bitcoin (BTC) has made modest strides in the past 24 hours, with the price rising by 1.02%. While this uptick might seem minor, a significant shift in the behavior of Bitcoin’s long-term holders (LTHs) has caught the attention of market analysts. These holders—who typically invest with the intention of holding for the long term—have reduced their selling activity by an impressive 60%, signaling that they may be anticipating further price increases, potentially up to $120,000.

Long-Term Holders Show Confidence Amidst Market Struggles

Despite Bitcoin’s struggle to break through higher resistance levels, long-term holders are showing resilience and confidence in the cryptocurrency’s future. According to Axel Adler, a market analyst, the reduction in profit-taking is a noteworthy sign. Long-term holders—those who have held Bitcoin for over a year—are cutting back on the number of BTC they are selling, a shift that is seen as a bullish indicator.

Adler’s analysis reveals that long-term holders are now selling 40,000 BTC less per day compared to previous price levels between $90,000 and $100,000. In essence, long-term investors are holding onto their Bitcoin rather than liquidating it, signaling greater faith in the cryptocurrency’s future growth. The decline in selling pressure means fewer coins are circulating on the market, which could contribute to future price increases.

Eyeing the $120K Target: When Will Bitcoin Reach the Next Milestone?

As Bitcoin’s price hovers below the $100,000 mark, long-term holders are becoming increasingly focused on the $120,000 threshold. Adler suggests that at this price point, LTHs will likely begin to take profits, as they would have achieved an impressive 500% return on their Bitcoin investment.

The anticipation of this level of profit-taking could have significant implications for the market. If Bitcoin does reach $120,000, it could trigger massive selling by long-term holders, creating substantial selling pressure and potentially causing a short-term price drop. While such a surge could be exciting for investors, the corresponding increase in selling activity could lead to volatility in the market.

Long-Term Holder SOPR: A Key Indicator

Bitcoin’s price and behavior are heavily influenced by the actions of long-term holders, and one of the key indicators that analysts use to track their sentiment is the Long-Term Holder Spent Output Profit Ratio (SOPR). The SOPR measures how much profit long-term holders are making when they sell their Bitcoin. A ratio above 1 suggests that holders are profiting, while a ratio below 1 indicates a loss.

Recently, Bitcoin’s SOPR has seen a significant drop from a high of 5.7 to 2.7 over the past 10 days, indicating that long-term holders are no longer selling as aggressively. In previous periods, when Bitcoin traded above $100,000, the SOPR remained between 2.5 and 3, suggesting that LTHs were still making substantial profits. However, with the SOPR now dipping, it’s clear that long-term holders are holding back on selling, which reduces the selling pressure on Bitcoin’s price.

Mayer Multiple: Another Bullish Signal

Another key indicator that suggests Bitcoin’s price could be poised for a surge is the Mayer Multiple. This metric compares Bitcoin’s current price to its 200-day moving average (DMA). A Mayer Multiple around 1 indicates that Bitcoin is trading near its fair value. Currently, the Mayer Multiple is at 1.2, signaling that Bitcoin is neither overvalued nor undervalued, but rather in a stable position.

When the Mayer Multiple is moderate, it often signals a period of consolidation. Long-term holders typically reduce their accumulation during this phase but remain confident in their investments. This steadiness suggests that many LTHs are more focused on holding and waiting for the next major price surge, which could potentially push Bitcoin to new heights.

Reduced Exchange Netflows: Large Holders Are Holding Strong

Another noteworthy trend in the Bitcoin market is the decrease in the ratio of Bitcoin’s large holders netflow to exchange netflow. Over the past two weeks, this ratio has fallen from 5.59% to just 0.92%. This drop indicates that large holders—often referred to as “whales”—are transferring less of their Bitcoin holdings to exchanges for selling.

Whales, who are typically long-term holders themselves, tend to accumulate Bitcoin during bear markets and liquidate their holdings during bull markets. The fact that they are now holding on to their Bitcoin suggests that there is less profit-taking among this group, further supporting the notion that long-term holders are more confident about Bitcoin’s future price movements.

Reduced Profit-Taking Could Fuel Future Growth

The current market dynamics suggest that Bitcoin’s price could be in for a period of consolidation as long-term holders reduce their profit-taking activities. With fewer coins being sold, the selling pressure on Bitcoin diminishes, allowing the cryptocurrency to potentially recover and reclaim the $100,000 level.

However, as with all markets, there are still risks. Both long-term holders and shorter-term traders are still actively involved, and Bitcoin could continue to experience periods of sideways trading until it finds the momentum to make a significant upswing.

Conclusion: A $120K Bitcoin May Be Closer Than It Seems

In conclusion, the reduction in profit-taking among Bitcoin’s long-term holders is a bullish sign for the cryptocurrency market. As these holders hold their ground and reduce selling activity, Bitcoin’s price may begin to climb toward the coveted $120,000 mark. Once Bitcoin reaches this milestone, we could see a wave of profit-taking from long-term holders, potentially leading to short-term volatility.

However, with strong signals of confidence from LTHs and reduced selling pressure, Bitcoin could be primed for a major surge in the coming months. Investors and traders alike will be keeping a close eye on these trends as they could be the key to Bitcoin’s next major price move.

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