How Did Long-Term Bitcoin Holders Reacted to BTC’s Rally?
Long-term Bitcoin (BTC) holders have begun taking profits since the cryptocurrency attempted to reach $100,000. As a result, Bitcoin’s price fell back to $93,000, impacting the broader cryptocurrency market capitalization.
Is Bitcoin Price Rebounding? What short-term investors may want to know is On-chain analysis Check the opportunity.
Activity around Bitcoin drops, holders book gains
According to data from CryptoQuant, Bitcoin’s long-term profit-to-output ratio has surged to 2.86. This ratio measures the activity of long-term investors who have held a token for more than 155 days.
When the ratio exceeds 1, it means that these long-term Bitcoin holders are selling to make a profit. On the other hand, if the profit-to-output ratio is less than 1, it means that the holder is selling at a loss. Since this reading is higher, it suggests that these holders are profiting from the recent price increase.
In addition to this, it is worth noting that this profit-taking is the highest profit-taking by holders since August 30. If this situation continues, then BTC price may fall below the $93,000 threshold.
On top of this, active addresses on the Bitcoin network have dropped significantly this week, which could spell trouble for the cryptocurrency’s price if this trend continues. Active addresses measure The only address involved Transactions reflect the user’s participation in the blockchain.
When active addresses increase, it indicates Growing online activity and adoption. Conversely, a decline indicates reduced engagement.
As of November 26, there were nearly 1 million active Bitcoin addresses, showing great appeal. However, as of this writing, that number has dropped to 768,000, a significant decrease. If active address activity continues to weaken, it could signal weakening market sentiment and could lead to further price declines, as previously highlighted.
BTC Price Prediction: Is It Time to Drop Below $90,000?
On the daily chart, The price of Bitcoin has fallen It is below the dotted line of the Parabolic Stop and Reversal (SAR) indicator. This technical tool identifies support and resistance levels.
A dotted line below the price indicates strong support, while a dotted line above the price indicates resistance that could lead to a decline. Currently, Bitcoin faces the latter situation.
If this resistance persists, Bitcoin could drop to $84,640. However, if you hold it for a long time Reduce profit takingthe value of Bitcoin may rise, potentially reaching $99,811.
Disclaimer
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