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Bitcoin Holders Cashing Out: Price Plunge Ahead?
22 Dec
Summary
- Long-term Bitcoin holders are increasing selling activity.
- 30-day change in long-term holder supply hit a 20-month low.
- Net unrealized profit/loss for long-term holders declined.
Bitcoin's price action has been volatile, featuring sharp swings and tentative recovery efforts. A significant factor influencing its current trajectory is the weakening confidence among influential long-term holders, who have increased their selling activity in recent sessions.
On-chain data reveals that the 30-day change in long-term holder supply has fallen to a 20-month low, last seen in April 2024. This elevated distribution pressure suggests these investors are reducing their exposure to safeguard existing profits as unrealized gains diminish. This behavior typically weighs on price recovery, increasing supply without a commensurate rise in new demand.
Further analysis of macro indicators shows the long-term holder net unrealized profit or loss metric has declined to a monthly low. This erosion of profits makes this group more sensitive to further price dips. While historically such declines can eventually slow selling, Bitcoin currently trades near $87,900, facing resistance at $88,210 and awaiting stronger market cues.
